LG Uplus (032640) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly operating profit exceeding KRW 300 billion, with consolidated service revenue for Q2 2025 reaching KRW 3.02 trillion, up 2.5% year-over-year, and operating income at KRW 305 billion, up 19.9% year-over-year, reflecting strong wireless and wireline growth and cost efficiency improvements.

• Net profit for Q2 2025 was KRW 217.1 billion, up 31.9% year-over-year, and EBITDA rose 6.2% to KRW 977.2 billion.

• Profit-driven operations, structural cost competitiveness, and AI-driven productivity contributed to results.

• Focused on digital growth strategies, security enhancements, and differentiated AX products across business segments.

• Wireless service revenue increased 4.3% year-over-year, with total mobile subscribers up 9.9% and 5G penetration at 79.9%.

Financial highlights

• Q2 2025 service revenue grew 2.5% year-over-year on both consolidated and standalone bases, reaching KRW 3.02 trillion.

• Consolidated operating profit rose 19.9% year-over-year to KRW 304.5 billion; operating revenue for Q2 2025 was KRW 3.84 trillion, up 10.0% year-over-year.

• Net profit increased 31.9% year-over-year to KRW 217.1 billion; EBITDA up 6.2% to KRW 977.2 billion.

• CapEx spend was KRW 393.3 billion, down 29.4% year-over-year.

• Operating margin improved to 10.1%, net income margin to 5.6%, and EBITDA margin to 32.4%.

Outlook and guidance

• Plans to sustain earnings growth by focusing on customer value, AX-driven management, and digital transformation.

• Will continue to improve cost structure, resource allocation, and AI adoption to maximize profitability.

• Value enhancement plan includes a KRW 80 billion share buyback in 2025, with repurchase period starting August 4, 2025, and ongoing focus on increasing per-share value.

• Annual cash dividends to be maintained at least at the 2024 per-share level, with a target total shareholder return of 40-60% and ROE target of 8-10% mid-to-long term.

• Expects to maintain marketing efficiency and defend against excessive competition, especially after the repeal of the Handset Subsidy Act.