LG U+ Q2 net profit soars, fastest growth for third consecutive quarter

Korea’s third-largest mobile carrier LG U+ said the company’s operating profit in the second quarter increased by 59.2 percent on-year, the fastest growth rate for three consecutive quarters among local mobile carriers.

In the meantime, quarterly sales for LG U+ went up by 5.1 percent on-year to reach 3.2 trillion won ($2.7 billion) during the April-June period, the company added.

Since the fourth quarter last year, quarterly operating profit for LG U+ has increased by 75 percent, 11.5 percent and 59.2 percent on-year, respectively.

LG U+ explained its recent performance has been due to increased subscribers to its wireless business.

Sales from the company’s wireless service advanced by 4.9 percent on-year to 1.35 trillion won during the same period. The wireless service posted 15.9 million subscribers as of the second quarter.

Of total subscribers, the company’s 5G subscribers accounted for 11.3 percent in the first quarter this year, compared to 2.6 percent from a year earlier.

Sales from the company’s smart home business -- pay TV service and internet network services -- increased 10.5 percent on-year to 494.6 billion won with increased subscribers. The number of pay TV subscribers increased in the second quarter by 130,000. The total number of subscribers as of the second quarter marked 4.73 million, up 11.5 percent on-year.

Revenue from the internet data center and solution business increased by 2.7 percent at 345 billion won, the company added.

Meanwhile, LG U+ noted its capital expenditures -- for 5G infrastructure and other projects -- posted 625 billion won in the second quarter, up 66.9 percent compared to the previous quarter. LG U+ has now fulfilled 1 trillion won out of 2.5 trillion won in capital expenditures it pledged to invest.

By Shim Woo-hyun (ws@heraldcorp.com)