Recorded an annual operating profit of 686.2 billion won in 2019
Wireless subscriptions increased by 1.128 million, IPTV by 458,000
Performing well in the mobile and smart home businesses


LG Uplus disclosed on the 7th that it achieved sales of 12.382 trillion won, service revenue of 9.2056 trillion won, and operating profit of 686.2 billion won in 2019. Service revenue is calculated by excluding terminal revenue from sales and adding up wired and wireless revenue.

Sales and service revenue increased by 5.6% and 2.9%, respectively, compared to the previous year. Operating profit decreased by 7.4%. Among service revenues, wireless revenue recorded 5.5168 trillion won, a 1.4% increase year-on-year.

The number of subscribers increased by 8% compared to last year, exceeding 15,256,000.

The number of budget phone subscribers increased by 42.1% year-on-year to 1,091,000. This is the result of providing a total of six types of roaming plans, including unlimited data and time-based plans, and 150GB of large-capacity LTE data every month, as well as partnering with KB Kookmin Bank to launch the financial industry's first budget phone.

Wired revenue, which is the combined revenue of smart home and enterprise, reached 4.0289 trillion won, up 4.5% from 3.8551 trillion won in the previous year due to the increase in smart home revenue.

Smart home revenue, which is the sum of revenue from IPTV, high-speed internet, and internet phone, rose 10.9% year-on-year to record 2.0462 trillion won. IPTV revenue surpassed 1 trillion won for the first time. IPTV achieved 1.0323 trillion won, a 16.6% increase from last year, while high-speed internet revenue reached 813.5 billion won, a 9% increase.

IPTV subscribers reached 4,477,000, an increase of 458,000, or 11.4%, compared to the previous year.

Enterprise revenue, which is the sum of e-Biz, IDC, dedicated lines, and telephone, recorded 1.9827 trillion won, a 1.3% decrease from the previous year. The growth of the IDC business, driven by continued orders from large domestic and global clients, minimized the impact of declining revenue in e-Biz (such as electronic payments), dedicated lines, and telephone.

Annual marketing expenses recorded 2.246 trillion won, an 8.7% increase from the previous year, driven by factors such as increased advertising and promotional costs due to the commercialization of 5G services and an increase in the total amount of official subsidies. In the fourth quarter, it decreased by 0.5% compared to the previous quarter due to the continued reduction in the cost of acquiring subscribers per person.

CAPEX amounted to 2.6085 trillion won, an 86.7% increase compared to the previous year, driven by network investments due to the full-scale construction of 5G base stations.


Driving Innovation in 2020 through Digital Transformation
LG Uplus has decided to identify future growth engines in its 5G B2C and B2B businesses. It plans to lead service competition in the B2C market through the launch of 5G 3.0 services and expand business opportunities in the B2B sector into areas such as smart factories, remote control, connected cars, smart schools, and drones.

The plan is to improve call quality through the full-scale deployment of in-building cells for the 5G network and to accelerate preparations for SA-based 5G commercialization.

We will also continue the sustained growth of smart home businesses, including IPTV and AIoT. We are also improving user convenience by introducing a new AIoT platform that enables seamless connectivity between the home and mobile devices.

We also plan to accelerate the creation of synergies by discovering various convergence services together with LG HelloVision, which was acquired last year.