LG Uplus (032640) Q4 2023 earnings summary

Executive summary

• FY23 consolidated service revenue rose 2.0% YoY to KRW 11.636tn, while operating income fell 7.7% to KRW 998bn and net income fell 4.9% to KRW 630.2bn.

• Wireless and enterprise infrastructure revenue grew, supported by subscriber gains and IDC and solution businesses; FY23 EBITDA increased 1.0% to KRW 3,569.3bn.

Financial highlights

• FY23 operating revenue was KRW 14,372.6bn, up 3.4% YoY; handset revenue rose 9.6% to KRW 2,736.2bn.

• Q4 operating revenue increased 5.8% YoY to KRW 3,820.9bn; service revenue rose 2.2% to KRW 3,009.8bn, while operating income fell 31.8% to KRW 195.5bn.

• FY23 operating expenses increased 4.3% to KRW 13,374.6bn; net income was KRW 630.2bn, down 4.9% YoY.

• FY23 EBITDA was KRW 3,569.3bn, up 1.0% YoY; EBITDA margin was 30.7%, versus 31.0% in 2022.

Outlook and guidance

• FY24–FY26 dividend policy targets annual dividends above 40% of net income on a separate-statement basis and annual cash DPS at least KRW 650, the FY23 level.

• A joint venture for the Volt-Up EV charging business was planned for mid-2024, alongside expansion of charging infrastructure.

• AICC services and small-business AI solutions are a focus for B2B growth; the domestic AICC market is projected to reach KRW 500bn by 2030.