LG Uplus (032640) Q3 2024 earnings summary

Executive summary

• Consolidated service revenue for Q3 2024 grew 2.9% year-over-year to KRW 2.99 trillion, with wireless service revenue at KRW 1.55 trillion, up 2.6% year-over-year.

• Mobile cumulative lines reached 27.87 million, up 17% year-over-year, with 5G handset subscribers at 7.69 million (over 70% of total handsets).

• Smart Home revenue increased 5.7% year-over-year to KRW 650.9 billion, driven by broadband and IPTV subscriber growth.

• Enterprise infrastructure revenue rose 8.6% year-over-year to KRW 428.5 billion, led by strong IDC and solution business growth.

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

Financial highlights

• Q3 2024 consolidated service revenue grew 2.9% year-over-year; standalone service revenue up 3.5%.

• Q3 EBITDA increased 2.4% year-over-year to KRW 920.5 billion, with an EBITDA margin of 30.8%.

• Q3 consolidated operating profit declined 3.2% year-over-year to KRW 246 billion; net profit down 13.9% to KRW 134.9 billion.

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

• CAPEX for Q3 2024 was KRW 448.4 billion, down 14.4% year-over-year.

Outlook and guidance

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

• Service revenue targeted to grow 2% year-over-year for FY2024 (excluding device sales).

• Focus on expanding digital channels, AI-driven services, and profitability in fixed and mobile businesses.

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

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