April 26, 2024

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[THE INVESTOR] South Korean mobile carrier LG Uplus achieved around 18 percent growth in operating profit last year, owing to increased profits from both mobile and broadband internet businesses, it said on Feb. 2.

The third largest in the Korean telecommunication industry, the company reached 9 trillion won ($7.8 billion) in sales, up 4.3 percent from a year earlier, and 746.5 billion won in operating profit.  

Net profit jumped 40.3 percent to 492.7 billion won, which saw the company’s board raise dividends per share from 250 won to 350 won this year.

The number of subscribers to LG Uplus’ long-term evolution network service marked 10.97 million last year, up from 9.88 million in 2015, the company said, helping boost the wireless business’ profit to 5.4 trillion won. 

The company’s broadband internet business including IPTV and internet-based phone services, obtained a 7.9 percent rise to reach 3.5 trillion won in profit, it said.

The number of IPTV subscribers climbed 12.2 percent on-year, the mobile carrier said.

LG Uplus’ improvement in last year’s performance is also contributable to its CEO Kwon Young-soo’s cost-cutting efforts. Kwon, a former chief financial officer at LG Electronics, reduced the mobile carrier’s marketing costs 2.4 percent last year.

“This year, LG Uplus will pursue meaningful profit growth in core businesses such as IoT, IPTV, AI and big data,” the company said in a statement.

The mobile carrier has set a goal of securing more than 1 million households subscribing to its home IoT service, while starting to establish a nationwide Narrow Band – Internet of Things for industries.

“The company will get ready for future businesses, while continuing its efforts to raise shareholders’ values,” said Lee Hyuk-ju, its chief financial officer. 

By Song Su-hyun/The Korea Herald (song@heraldcorp.com)