LG U+'s net jumps 35 percent as 5G subscriptions rise

Mobile carrier LG U+ reported a 35 percent increase on year in quarterly net profit to 200.9 billion won ($178.6 million).

In the January-to-March period this year, the company’s operating profit increased 25.4 percent on year to 275.6 billion won while revenue was up 4 percent to 3.4 trillion won.

LG U+ attributed the results to an increase of subscriber numbers for its mobile network and “smart home” services, like internet protocol television (IPTV) and high-speed internet.

The number of LG U+ mobile subscribers rose 9.4 percent to 16.9 million, the company said. The number of 5G subscribers increased 129.2 percent on year during the first quarter. LG U+ said the start of lower-priced 5G subscription products lured in users.

Revenue for the smart home business unit rose 8.8 percent revenue increase on year to 530 billion won, as IPTV and high-speed internet subscriber numbers increased. Sales from providing data centers and IT solutions to corporate clients increased by 9 percent on year to 341.5 billion won.

Along with the revenue increases, LG U+ managed to save on marketing costs during the quarter, which were down 3 percent compared to the same period last year.

BY SONG KYOUNG-SON [song.kyoungson@joongang.co.kr]