LG Uplus announced that its operating profit for the third quarter of 2017, based on Korean International Financial Reporting Standards (K-IFRS), increased by 1.3% year-on-year to KRW 214.1 billion, driven by stable growth in its wired and wireless businesses.

Total sales reached KRW 3.0596 trillion, up 11.8% year-on-year and 1.7% quarter-on-quarter. Operating income reached KRW 2.3772 trillion, up 5.2% year-on-year and 1.9% quarter-on-quarter.

Net income reached KRW 142.8 billion, up 6.6% year-on-year and 4.8% quarter-on-quarter, due to a decrease in interest expenses resulting from debt repayment.

Among operating revenues, wireless revenue recorded KRW 1.4065 trillion, up 3.6% year-on-year, driven by continued net growth in high-value LTE subscribers and increased average monthly data usage.

As of the third quarter, LG U+ had 13,033,000 total wireless subscribers, of which 11,861,000 were LTE subscribers, accounting for 91% of the total. The growth in wireless revenue is attributed to factors such as expanding membership benefits and discount programs like the U+ Family Unlimited Love program for bundled and long-term customers.

The average revenue per user (ARPU) in the third quarter fell 1.19% compared to the previous quarter, recording KRW 35,316, due to factors such as an increase in the optional contract discount rate. However, the total net subscriber additions increased by 9.8% compared to the previous quarter to 202,000, continuing quantitative growth, and in terms of qualitative growth, the proportion of net additions by MNOs was maintained at 85%, continuing the stable upward trend of wireless revenue.

Wired revenue reached KRW 962.2 billion, up 7.3% year-on-year, driven by increased revenue from the TPS and data businesses.

Among wired revenues, TPS business revenue reached KRW 449.7 billion, a 12.2% increase year-on-year. This was largely driven by growth in IPTV and Gigabit Internet subscribers. IPTV subscribers reached 3.429 million, up 16.6% year-on-year and 3.6% quarter-on-quarter, while high-speed Internet subscribers reached 3.768 million, up 5.6% year-on-year and 1.3% quarter-on-quarter.

In particular, the IPTV children's service platform 'U+tv Kids' Land', which was launched last June, has been well-received for its differentiated content such as 'YouTube Kids' and 'TV that Reads Books' and its optimized user environment for parents and children, leading to the acquisition of IPTV subscribers.

Data revenue reached KRW 424.3 billion, up 5.2% year-on-year, driven by increased e-Biz revenue. E-Biz revenue reached KRW 187.8 billion, up 15.3% year-on-year, driven by growth in the online and mobile payment markets during the Chuseok holiday season and the acquisition of large customers.

Home IoT services secured 920,000 subscribers by the end of the third quarter, easily achieving this year's target. In the third quarter, the industrial IoT sector launched a pilot remote metering project based on the nationwide NB-IoT network, aiming to dominate the market. LG Uplus plans to solidify its position as Korea's leading IoT service provider by offering innovative industrial and public IoT services, as well as home IoT, which boasts the largest number of commercialized products and subscribers in Korea.

Marketing expenses in the third quarter of 2017 reached KRW 552 billion, a 13.4% increase year-on-year, driven by increased total sales. LG U+ plans to continue spending to enhance customer value, including through innovative device purchase support programs.

CAPEX in the third quarter was KRW 314.7 billion, up 12.6% year-on-year and 27.7% quarter-on-quarter, driven by the construction of a nationwide NB-IoT network and expansion of home coverage.

LG Uplus CFO (Chief Financial Officer) Vice President Lee Hyuk-joo said, “In the third quarter, LG Uplus continued to achieve quality growth across all business sectors through differentiated services and solidified the foundation for future profits,” adding, “Based on the stable growth of existing businesses, we will continue to improve our performance by strengthening our capabilities in new business areas such as AI and enhancing the competitiveness of our core businesses.”