LG Uplus sees 8.3% decrease in Q3 net profit on electricity costs

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LG Uplus sees 8.3% decrease in Q3 net profit on electricity costs

Published: 07 Nov. 2023, 11:30

KIM JU-YEON
[email protected]

LG Uplus [YONHAP]

LG Uplus's third-quarter net profit decreased 8.3 percent on year despite overall growth in sales due to increased operating costs, such as electricity rates, in particular.

Its net income stood at 156.7 billion won ($120.8 million) in the July to September period on a consolidated basis, compared with 170.8 billion won for the same period last year, the company said in a regulatory filing on Tuesday.

Operating income was 254.3 billion won, down 10.8 percent from a year ago, while revenue rose 2.3 percent to 3.58 trillion won.

The earnings fell below market expectations. The average estimate of net profit by analysts stood at 169.7 billion won, according to a survey by financial data firm Yonhap Infomax.

LG Uplus said its sales were strong across its flagship mobile service and other businesses, but its net profit sank due to increased electricity prices.

Sales from its mobile business gained 2.7 percent on-year to 1.59 trillion on a 22.3 percent increase 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, powered by growth in its internet data center 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 rise 2.8 percent to 607.2 billion won with an increase in IPTV and high-speed internet subscriptions.

BY KIM JU-YEON, YONHAP [[email protected]]