SEOUL, Nov. 7 (Yonhap) — LG Uplus Corp., South Korea’s third-largest mobile carrier, reported Tuesday that its third-quarter net income dropped 8.3 percent year-on-year despite overall sales growth, due to an increase in costs, primarily in electricity rates.
The company’s net profit was 156.7 billion won (US$120.8 million) in the July-September period on a consolidated basis, compared to 170.8 billion won the same period last year, according to a regulatory filing.
Operating income was 254.3 billion won, a decrease of 10.8 percent from a year ago, while revenue rose 2.3 percent to 3.58 trillion won.
The earnings were lower than market expectations, with the average net profit estimate from analysts standing at 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 were strong across its mobile service and other businesses, but its net profit declined due to higher electricity prices and costs associated with the acquisition of a frequency range last year to improve its fifth-generation network service quality.
Sales from the mobile business increased 2.7 percent year-on-year to 1.59 trillion won, thanks to a 22.3 percent rise in the number of its mobile subscribers.
Corporate infrastructure sales jumped 7.9 percent in the third quarter from a year ago to 404 billion won, fueled by growth in its internet data center (IDC) business and solution provider models, including its in-vehicle infotainment platform and cargo transportation brokerage platform service.
The company’s smart home business also saw its sales increase 2.8 percent to 607.2 billion won, due to an increase in IPTV and high-speed internet subscriptions.
Yeo Myung-hee, the mobile carrier’s chief financial officer, said in a conference call that its earnings for this year are expected to exceed market expectations if its mobile business continues to show 3 percent level growth and its corporate infrastructure business grows in the fourth quarter as usual.
LG Uplus will also benefit from sales from its new data center, which opened last month in Pyeongchon, just south of Seoul, starting early next year, and plans to build another IDC by 2027, Yeo added.
nyway@yna.co.kr
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