LG Uplus (032640) Q3 2024 earnings summary

Executive summary

• Accelerated digital transformation with a focus on AI, launching new services and enhancing customer value across core businesses.

• Consolidated service revenue for 3Q24 reached KRW 2.99 trillion, up 2.9% year-over-year, with wireless service revenue at KRW 1.55 trillion, up 2.6% year-over-year.

• Operating income for 3Q24 was KRW 246 billion, down 3.2% year-over-year, with an operating margin of 8.2%.

• Net income for 3Q24 was KRW 134.9 billion, down 13.9% year-over-year, and net income margin decreased to 3.5%.

• 5G penetration exceeded 70% of total handset subscribers, with over 7.6 million cumulative 5G subscribers.

Financial highlights

• Operating revenue for 3Q24 was KRW 3.80 trillion, up 6.2% year-over-year and 8.8% sequentially.

• EBITDA for 3Q24 was KRW 920.5 billion, up 2.4% year-over-year, with an EBITDA margin of 30.8%.

• Handset revenue surged 20.0% year-over-year and 47.5% sequentially to KRW 810.9 billion.

• CAPEX for 3Q24 was KRW 448.4 billion, down 14.4% year-over-year and 19.5% sequentially.

• Operating expenses increased 6.9% year-over-year and 9.7% sequentially to KRW 3.56 trillion.

Outlook and guidance

• Expectation for this year to form the bottom, with top-line growth anticipated in 2025.

• Targeting 30,000 customers for the 'My shop package AX solution' by year-end, aiming for KRW 200 billion in revenue by 2027.

• Continued focus on expanding AI-driven services and content, including new bundled offerings and in-vehicle infotainment.

• Focus on expanding digital channels and profitability in fixed and mobile businesses.

• Plans to disclose a corporate value-up plan balancing growth and shareholder returns before year-end.