LG Uplus (032640) Q1 2025 earnings summary

Executive summary

• Q1 2025 saw a turnaround in profitability, with operating income up 15.6% year-over-year to KRW 255.4 billion, driven by structural cost improvements and a focus on core business efficiency.

• Consolidated service revenue for Q1 2025 reached KRW 2.94 trillion, up 1.6% year-over-year, with wireless service revenue at KRW 1.54 trillion, up 2.4%.

• Net income increased 24.6% year-over-year to KRW 162.5 billion, with EBITDA up 3.8% to KRW 921.3 billion.

• Strategic partnerships with Google and AWS are advancing AI-driven B2C and B2B offerings, and new AI-based services and premium security rate plans have enhanced customer trust.

• The company maintained a strong market position in mobile, smart home, and enterprise infrastructure, with continued investment in 5G, AI, and platform businesses.

Financial highlights

• Q1 2025 operating revenue was KRW 3.75 trillion, up 4.8% year-over-year; service revenue up 1.6%; handset revenue up 18.5%.

• Operating profit rose 15.6% year-over-year to KRW 255.4 billion.

• Net profit increased 24.6% year-over-year to KRW 162.5 billion.

• EBITDA up 3.8% year-over-year to KRW 921.3 billion.

• CapEx for Q1 was KRW 333.1 billion, down 13.4% year-over-year.

Outlook and guidance

• Annual guidance expected to be met, with continued focus on profitability over revenue growth.

• Management targets over 2% service revenue growth for FY2025, driven by digital transformation and platform expansion.

• Ongoing efforts to enhance operational efficiency and leverage AI for productivity.

• Shareholder return policy remains unchanged, with plans for treasury share cancellation and potential buyback.

• Total shareholder return targeted at 40-60%, with flexible buybacks up to 20% and ongoing review of full treasury share cancellation.