LG Uplus (032640) Q3 2025 earnings summary

Executive summary

• Q3 2025 saw solid earnings growth in the mobile business, with overall performance impacted by a one-off labor cost from an early retirement package (ERP) or voluntary retirement program.

• Excluding the ERP impact, operating profit continued its year-over-year uptrend, aligning with the first half trajectory.

• Service revenue grew 4.2% year-over-year to KRW 3,116.6 billion for the first nine months of 2025, with mobile, smart home, and enterprise infrastructure all contributing to growth.

• The company is accelerating digital transformation, focusing on AI-driven innovation, operational efficiency, and investments in data infrastructure and EV charging.

• Net income attributable to owners was KRW 434.9 billion for the first nine months, up from KRW 374.5 billion in the prior year period.

Financial highlights

• Q3 service revenue grew 4.2% year-over-year on both consolidated and separate bases, with consolidated revenue for the first nine months at KRW 11,603.3 billion.

• Consolidated operating profit was KRW 161.7 billion in Q3, down 34.3% YoY due to ERP; excluding ERP, it was KRW 311.7 billion, up 26.7% YoY.

• EBITDA for Q3 was KRW 831.3 billion, down 9.7% YoY; EBITDA margin declined to 26.7%.

• CapEx for Q3 was KRW 438.1 billion, down 2.2% YoY.

• Basic and diluted EPS for the first nine months were KRW 1,012, compared to KRW 871 in the prior year.

Outlook and guidance

• Service revenue growth for 2025 is expected to exceed 2%, with Q3 cumulative growth at 2.8%.

• Q4 will focus on steady top-line growth, efficiency, and resource optimization, with AI adoption as a key driver.

• Cost savings from ERP (KRW 150 billion, 6% of headcount) are expected to improve profitability in 2026.

• Dividend payout ratio increased from 30% to 40%, with further increases anticipated from 2026 as cost efficiencies materialize.

• Management targets at least 2% YoY growth in service revenue for full-year 2025 and mid-to-long term ROE of 8–10%.