LG Uplus’ Q2 profit up 13% on cost cuts

[THE INVESTOR] LG Uplus, the nation’s third-largest telecom carrier, said on Aug. 1 its second-quarter net profit increased 12.8 percent from a year ago largely due to cost-cutting efforts on marketing activities.

Net profit was 130.7 billion won (US$117.40 million) for the April-June period. Net profit was also 8.2 percent up to 2.87 trillion won on-year.

The company said it benefited from the government’s law revision that bans hefty customer subsidies for their new phone purchases, reducing spending on marketing activities.

Its average revenue per user, a key indicator of a mobile carrier’s profitability, rose to 36,027 won for the second quarter, from 35,839 won in the previous quarter.

The number of subscribers rose 4.9 percent on-year to 12.26 million.

By Lee Ji-yoon (jylee@heraldcorp.com)