LG Uplus recorded strong performance in the first quarter of 2025, driven by growth in both wired and wireless subscribers and the expansion of its business-to-business (B2B) infrastructure business based on artificial intelligence (AI) capabilities. Cost efficiency achieved through the restructuring of some low-profitability businesses also had a positive impact on performance.
LG Uplus announced on the 8th that its consolidated revenue for the first quarter of this year was 3.7481 trillion won, with operating profit recorded at 255.4 billion won. Compared to the same period last year, revenue increased by 4.8% and operating profit rose by 15.6%. Service revenue, excluding devices, was reported to be 2.9389 trillion won, marking a 1.6% increase compared to the same period last year.
Marketing expenses for the first quarter of this year amounted to 555.8 billion won, which is a 1.6% increase compared to the same period last year. The increase in advertising expenses was attributed to participation in the world's largest mobile communications exhibition, 'Mobile World Congress (MWC) 2025.' The company's capital expenditure (CAPEX) during this period decreased by 13.4% to 333.1 billion won compared to the same period last year.
◇ Wireless subscribers increased for 12 consecutive quarters
The number of wireless subscriptions at LG Uplus also increased in the first quarter of this year. The total number of subscriptions, including mobile network operators (MNO) and mobile virtual network operators (MVNO), rose by 10.7% to 29.075 million. The company has achieved double-digit growth in wireless subscriptions for 12 consecutive quarters. Accordingly, wireless business revenue for the first quarter of this year totaled 1.6121 trillion won, an increase of 2.0% compared to the same period last year. Excluding connection revenue, wireless service revenue, which includes basic fees, currency fees, and data, was reported at 1.5428 trillion won, a 2.4% growth from the same period last year.
MNO subscriptions increased by 6.7% to 20.513 million compared to the first quarter of last year. The number of 5G handset subscribers rose 14.0% to 8.196 million during this period, accounting for 74.8% of MNO handset subscribers. The churn rate improved by 0.09 percentage points to 1.09% compared to the same period last year.
MVNO subscriptions increased from 7.034 million in the first quarter of last year to 8.562 million in the first quarter of this year, reflecting a growth of 21.7%. The company noted, "As a result of launching 'All That Care', which allows users to easily check subscription information and usage online, and being the first in the MVNO industry to support self-activation for foreigners, we have focused on improving user convenience and solidified our lead in MVNO line count."
◇ Internet and IPTV businesses are also 'smooth sailing'
The smart home sector, which encompasses LG Uplus's internet and internet protocol television (IPTV) business, has also expanded its scope, driving performance growth. Revenue for this sector in the first quarter of this year was reported at 630.6 billion won, an increase of 2.4% compared to the same period last year.
During this period, revenue from the high-speed internet business increased by 6.9% to 296.5 billion won compared to the first quarter of last year. The company analyzed that its business expanded following the launch in January of the 'Premium Safety Compensation Plan', which enhanced security functions and added compensation features. High-speed internet subscriptions grew by 3.4% to 5.396 million compared to the same period last year.
In the first quarter of this year, IPTV subscriptions reached 5.611 million, reflecting a 2.4% increase from the same period last year. However, due to declines in home shopping broadcast revenue and video-on-demand (VOD) sales, IPTV revenue was reported at 330.1 billion won, a decrease of 1.2% compared to the same period last year.
◇ New business 'infrastructure' sector revenue increased by 2.1%
The 'corporate infrastructure' sector, which is considered a future growth area for LG Uplus, also achieved growth compared to the same period last year. Revenue in the corporate infrastructure sector, which includes business-to-business (B2B) solutions, data centers, and corporation lines, recorded 409.7 billion won, a 2.1% increase from the same period last year.
Revenue from the IDC business was 87.3 billion won, up 2.1% compared to the same period last year. LG Uplus explained that its second large-scale IDC, 'Pyeongchon 2 Center,' has smoothly accommodated client companies, and by optimizing the operation and management of artificial intelligence (AI) data centers (AIDC) for artificial intelligence-specific graphics processing units (GPUs), revenue size has increased.
Revenue from the solutions business recorded a growth of 0.4% to 118.9 billion won compared to the first quarter of last year. This business sector includes areas such as message relay, web hard drives, network (NW) solutions, smart mobility, and AI-based customer center (AICC). The company noted that consistent results are being achieved in the area of AI-centered digital transformation (AX). Revenue from corporate line businesses, including corporate internet and dedicated circuits, increased by 3.1% to 203.5 billion won compared to the same period last year.
Yeo Myeong-hee, Chief Financial Officer and Chief Risk Officer (CFO and CRO) of LG Uplus, said, "Even in an environment of increasing uncertainty globally, both revenue and operating profit increased in the first quarter of this year, maintaining a stable growth trend. We will strive to expand AI application areas to innovate customer experiences and secure future growth engines to enhance corporate value and shareholder benefits."