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LG Uplus logs 15.9% drop in net profit in the first quarter

Published: 09 May. 2024, 19:32

JIN EUN-SOO
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This file photo from July 23, 2020, shows LG U+'s logo at its headquarters in central Seoul. [YONHAP]

Mobile carrier LG Uplus said on Thursday that its net profit in the first quarter dropped 15.9 percent from a year earlier due to an increase in operational costs.

Its net profit came to 130.4 billion won ($95.3 million) in the January-March period, down 15.9 percent from 155.1 billion won a year ago, the company said in a regulatory filing.

Operating income totaled 220.9 billion won, a 15.1 percent drop over last year, while revenue rose 1 percent to 3.57 trillion won.

The earnings fell short of market expectations. The average estimate of net profit by analysts stood at 136.4 billion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

LG Uplus attributed the on-year decline in net profit to higher operational expenses in marketing and building an integrated computer network.

The company said its business infrastructure unit, in particular, showed robust growth in the first quarter, posting a 9.9 percent increase in sales to 405 billion won.

Sales from its solutions business jumped 19.8 percent on year to 122 billion won, and revenue from its internet data center business advanced 11.7 percent to 85.5 billion won.

LG Uplus' mainstay mobile business saw its profit go up 1.3 percent over last year to 1.58 trillion won as the number of its subscribers sharply increased.

Sales from its smart home business also grew 2.9 percent on year to 611.7 billion won.

Yonhap