LG Uplus Q2 net up 32% on robust wireless service

LG Uplus Corp., South Korea's No. 3 mobile carrier, said Tuesday its second-quarter net profit rose nearly 32 percent from a year earlier, driven by its robust wireless business.

Its net income amounted to 213.3 billion won ($163.3 million) in the April-June period, up 31.7 percent from the year-ago period.

Operating profit for the April-June period was 288 billion won, up 15.9 percent from a year ago, the company said in a regulatory filing. Revenue rose 1.3 percent to 3.42 trillion won.

The earnings exceeded market expectations. The average estimate of net profit by analysts stood at 174.3 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Sales from its wireless business rose 2.5 percent on-year to 1.57 trillion won in the second quarter, driven by a significant rise in mobile virtual network operators and the recovery of roaming sales.

The number of its mobile subscribers had increased by 14.3 percent on-year to 21 million as of end-June, with its 5G network users accounting for 57.2 percent of the total.

The company's smart home business also saw its sales rise 4 percent to 502.9 billion won for the three-month period ending in June from a year ago thanks to an increase in IPTV and high-speed internet subscriptions.

IPTV grew 2.8 percent year-over-year driven by the sustained growth of basic fee revenue. Broadband grew 5.6 percent on-year, thanks to the steady growth of subscribers to Giga, LG Uplus' high-speed internet service.

The company's business-to-business sector posted 1.1 percent on-year growth based on new business agreements and the launch of related products.

It said a contract for wireless communication circuits in all Hyundai and Kia models in 2023 is expected to have a positive impact on its smart mobility revenue. Also, U+Drive is set to be integrated into all Toyota car models to be released later this year. (Yonhap)