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SEOUL, Nov. 7 (Yonhap) — LG Uplus Corp., South Korea’s third-largest mobile carrier, reported Tuesday that its third-quarter net income had declined 8.3 percent year-on-year, due to a rise in costs, particularly electricity rates.
The company’s net income totaled 156.7 billion won (US$120.8 million) on a consolidated basis, compared to 170.8 billion won during the same period in 2019, according to a regulatory filing.
Operating income was 254.3 billion won, a 10.8 percent decrease from the previous year, while revenue increased 2.3 percent to 3.58 trillion won.
The result was lower than market expectations. Analysts had projected an average net profit of 169.7 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
This file photo from July 23, 2020, shows LG Uplus Corp.'s logo at its headquarters in central Seoul. (Yonhap)
LG Uplus said its sales had improved in its flagship mobile service and other businesses, but its net profit decreased due to increased electricity prices.
Sales from its mobile business rose 2.7 percent year-on-year to 1.59 trillion won, thanks to a 22.3 percent growth in its mobile subscribers.
Its corporate infrastructure sales also increased 7.9 percent year-on-year to 404 billion won, driven by growth in its internet data center business and solutions, such as its in-vehicle infotainment platform and cargo transportation brokerage platform service.
The company’s smart home business also saw a 2.8 percent rise in sales to 607.2 billion won due to an increase in IPTV and high-speed internet subscriptions.
nyway@yna.co.kr
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