LG Uplus (032640) Q2 2025 earnings summary

Executive summary

• Achieved record quarterly operating profit exceeding KRW 300 billion in Q2 2025, with consolidated service revenue reaching KRW 3.02 trillion, up 2.5% year-over-year, driven by strong wireless, wireline, and smart home growth, as well as cost efficiency improvements and AI-driven productivity.

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

• Major investments included a joint venture with Kakao Mobility for EV charging (Volt Up) and acquisition of land/buildings for a new IDC in Paju to support AI and cloud growth.

• Focused on digital growth strategies, security enhancements, and differentiated AX products across business segments, with continued emphasis on AI and customer-centric service innovation.

• Maintained strong credit ratings (AA for bonds, A1 for CP) and completed share buyback and cancellation to enhance shareholder value.

Financial highlights

• Q2 2025 service revenue grew 2.5% year-over-year on both consolidated and standalone bases, with consolidated operating profit rising 19.9% to KRW 304.5 billion.

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

• H1 2025 consolidated revenue: KRW 7.592 trillion (+2.5% YoY); operating income: KRW 559.9 billion; net income: KRW 379.6 billion.

• CapEx spend was KRW 393.3 billion in Q2 2025, down 29.4% year-over-year.

• Basic EPS for H1 2025: KRW 896.

Outlook and guidance

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

• Value enhancement plan includes a KRW 80 billion share buyback in 2025, with 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.

• Strategic focus on expanding digital infrastructure and EV charging.

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