LG Uplus' profit grows on brisk LTE business

By Yoon Sung-won

LG Uplus posted an operating profit of 154.7 billion won ($144.67 million) in the first quarter, up 36.7 percent from a year ago, the telecom company stated in a regulatory filing, Tuesday.

The mobile carrier attributed reduced marketing expenses and an increase in long-term evolution (LTE) subscribers to the quarterly achievement. The company recorded 113.2 billion won operating profit in the first quarter last year.

Its net profit in the quarter was 82.2 billion won, up 206.4 percent from last year’s, 26.8 billion won.

Sales reached 2.56 trillion won between January and March, down 8.1 percent from 2.78 trillion won year-on-year.

LG Uplus said its earnings from the wireless sector stood at about 1.3 trillion won, up 4 percent from a year ago.

The company said the increase in the number of LTE subscribers and the average revenue per user has led the 4.5 percent year-on-year growth of wireless service earnings in the quarter.

The number of LTE service subscribers in the first quarter was 8.79 million, up 4 percent from the previous quarter, and about 77 percent of the company’s entire mobile service subscribers.

The mobile carrier has pushed ahead with the LTE business since 2012 and has successfully expanded its presence in the domestic mobile service industry.

The company also said its marketing expenses in the first quarter were 503.8 billion won, down 2.8 percent from a quarter ago thanks to the Telecom Act that limits the provision of subsidies to attract subscribers.

It spent 238.2 billion won as capital expenditure and investment in the quarter, down 60.1 percent year-on-year, as it has already finished establishing a nationwide broadband LTE-A network.

“We seek sustainable growth in the video LTE service market by providing quality content services,” said LG Uplus Chief Financial Officer Kim Young-shub in a statement. “We will also expand the Internet of Things business by providing smart home, intelligent automobile, security and energy systems.”

LG Uplus closed at 10,800 won on the Seoul bourse, Tuesday, up 1.89 percent from Monday amid positive prospects for further growth.