Number of 5G subscribers at the three major carriers approaches 6 million
Performance improved compared to the fourth quarter despite COVID-19
It will grow through DX, 5G clusters, and contactless technologies.


The first-quarter 2020 earnings reports for all three major domestic telecommunications companies have been released. Despite COVID-19, performance actually improved compared to the fourth quarter of 2019.

Among the three companies, KT recorded the highest revenue and operating profit.

KT recorded consolidated revenue of 5.8317 trillion won and an operating profit of 383.1 billion won in the first quarter of 2020 under Korean International Financial Reporting Standards (K-IFRS). Following this, SK Telecom recorded revenue of 4.4504 trillion won and an operating profit of 302 billion won, while LG Uplus recorded revenue of 3.2866 trillion won and an operating profit of 219.8 billion won.

As of the end of the first quarter of 2020, marking the second year of 5G commercialization, the number of 5G subscribers reached approximately 2.65 million, 1.78 million, and 1.46 million for SK Telecom, KT, and LG Uplus, respectively, and is expected to soon exceed 6 million.


◇ Summary by Company = KT
Compared to the same period last year, total revenue remained similar, but service revenue rose by 1% as wireless and media businesses performed well due to the expansion of premium subscribers and B2B businesses such as AI/DX (Digital Transformation) grew. Operating profit fell by 4.7% as some group businesses, such as cards and hotels, were affected by COVID-19.

Targeting the post-COVID era, KT plans to discover services that will drive changes in personal lives and innovation in other industries. Having already secured industry-specific references, such as 5G shipyards, KT plans to accelerate DX across all industries by responding to customer demands, including remote work and online education solutions.

KT CFO Yoon Kyung-keun stated, “Although domestic and international economic uncertainties have increased due to the spread of COVID-19, we focused on strengthening profitability to achieve stable performance in core businesses such as wireless and media, and fully confirmed the growth potential of B2B businesses including AI and DX.”


◇ Summary by Company = SK Telecom
Revenue on a separate basis recorded 2.9228 trillion won, up 3.9% from the previous year. Although there were impacts such as a decrease in roaming revenue and a slowdown in mobile telecommunications market growth due to the aftermath of COVID-19, the upward trend in mobile telecommunications revenue has continued since the second quarter of last year, driven by an increase in 5G subscribers.

SK Telecom plans to introduce specialized 5G services such as cloud gaming and AR/VR, and strengthen marketing based on '5G clusters' that link 5G services with customer benefits. In addition, we plan to focus on providing new communication experiences to customers through cooperation with various domestic and international operators.

Yoon Poong-young, Head of SK Telecom’s Corporate Center, stated, “To ensure continuous and long-term growth, we have built a diversified portfolio centered on MNO, media, security, and commerce over the past three years,” adding, “We will strategically overcome the crisis situation through balanced growth in the four major business areas.”


◇ Summary by Company = LG Uplus
Both revenue and service revenue (revenue minus terminal revenue) increased compared to the same period last year. In the first quarter, operating revenue was recorded at 3.2866 trillion won and service revenue at 2.5175 trillion won, marking increases of 11.9% and 15.2%, respectively.

The increase in operating profit is attributed to the sustained growth of the mobile, IPTV, and high-speed internet sectors, as well as the growth of contactless-related businesses, such as synergies with LG HelloVision, mobile micropayments driven by increased indoor activities, VOD sales, and growing IDC customer demand.

LG Uplus Executive Vice President and CFO Lee Hyuk-joo stated, “Despite COVID-19, we have achieved balanced growth in our core business sectors,” adding, “We will prepare for the post-COVID contactless era while closely monitoring changes in the market environment to achieve the management goals announced at the beginning of the year and improve operating profit.”