LG Uplus (032640) Q4 2025 earnings summary

Executive summary

• Achieved solid growth in all business segments, driven by mobile subscription expansion, Giga Internet, AIDC growth, and AI services like ixi-O surpassing 1 million subscribers.

• Consolidated service revenue reached KRW 12.26 trillion in FY2025, up 3.5% year-over-year, with wireless service revenue at KRW 6.37 trillion, up 4.1% year-over-year.

• Operating income rose to KRW 892 billion, up 3.4% year-over-year, and net income surged 61.9% to KRW 509 billion, reflecting a base effect from prior asset impairment losses.

• Focused on business efficiency by restructuring low-margin operations and prioritizing core businesses, resulting in improved profitability.

• Enhanced customer value and future growth engines through AI transformation and digital experience innovation.

Financial highlights

• FY2025 consolidated service revenue rose 3.5% year-over-year to KRW 12.26 trillion, exceeding prior guidance.

• Operating profit increased 3.4% year-over-year to KRW 892.1 billion, with structural cost improvements boosting underlying growth.

• Net profit surged 61.9% year-over-year to KRW 509.2 billion.

• FY2025 operating revenue was KRW 15.45 trillion, up 5.7% year-over-year.

• Capex was KRW 1.75 trillion, down 8.9% year-over-year due to deferred AIDC investment.

Outlook and guidance

• Targeting above 2% standalone service revenue growth for 2026, with a focus on profitability and operational efficiency through AX automation.

• Plans to increase investment in security and AIDC as future growth drivers.

• Expecting B2C growth to moderate in 2026, while B2B, especially AIDC, is projected to maintain or exceed 2025 growth rates.

• The company aims to further enhance operational efficiency in FY2026 through AI-based initiatives and digital integration.