LG Uplus (032640) investor relations material

Executive summary

• Achieved well-balanced growth across mobile, smart home, and B2B infrastructure, with consolidated service revenue reaching KRW 3.04 trillion in Q1 2026, up 3.3% year-over-year.

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

• Net income increased 8.4% year-over-year to KRW 176 billion; EBITDA grew 4.1% to KRW 958.8 billion.

• Mobile subscribers reached 30.93 million, up 6.4% year-over-year, with 5G penetration at 84.2%.

• Major investments included a joint venture for EV charging with Kakao Mobility and acquisition of land/buildings for a new AI Data Center in Paju.

Financial highlights

• Q1 2026 consolidated revenue was KRW 3.804 trillion, up from KRW 3.748 trillion in Q1 2025.

• Operating profit increased to KRW 272.3 billion, and net income attributable to owners rose to KRW 176.9 billion.

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

• Debt to equity ratio stable at 117.5% versus end of 2025; net debt to equity improved to 53.1%.

• Total assets stood at KRW 19.69 trillion, with total liabilities at KRW 10.64 trillion as of March 31, 2026.

Outlook and guidance

• Q2 focus on quality-driven growth, ROI, and cash flow enhancement, with ongoing investments in AIDC and AI platforms.

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

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

• Management targets at least 2% year-over-year growth in standalone service revenue for 2026.

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