LG Uplus (032640) investor relations material

Executive summary

• Achieved well-balanced growth across mobile, smart home, and B2B infrastructure, exceeding initial guidance for Q1 2026.

• Consolidated service revenue reached KRW 3.04tn in Q1 2026, up 3.3% year-over-year, with balanced growth across all segments.

• Operating profit rose to KRW 272.3bn, a 6.6% increase year-over-year, with an operating margin of 9.0%.

• Net income for Q1 2026 was KRW 176.0bn, up 8.4% year-over-year, and EBITDA grew 4.1% to KRW 958.8bn.

• Focused on profitability expansion and operational efficiency, especially in telecom and AX business.

Financial highlights

• Operating revenue for Q1 2026 was KRW 3.80tn, up 1.5% year-over-year.

• Service revenue grew 3.3% year-over-year (consolidated) and 3.9% (standalone).

• CapEx on separate basis was KRW 317.2bn, down 4.8% year-over-year.

• Debt to equity ratio stable at 117.5% versus end of 2025.

• Operating expenses increased 2.9% year-over-year, with marketing expenses up 11.7% and accounting for 21.7% of service revenue.

Outlook and guidance

• Q2 focus on quality-driven growth, ROI, and cash flow enhancement.

• Continued emphasis on telecom profitability and AX business competitiveness for mid- to long-term growth.

• Dividend payout ratio maintained at a minimum of 40%, with no year-over-year decline in cash dividends.

• Additional stock repurchase of KRW 80bn announced, and full cancellation of treasury shares completed.

• Ongoing implementation of corporate value enhancement plan and transparent communication with shareholders.