LG Uplus, the third largest mobile operator in South Korea, reported a second straight quarter of gains in mobile service revenue and ARPU during Q3, along with a surge in handset revenue driven by its 5G launch in April.
Wireless service revenue increased 3.5 per per cent year-on-year to KRW1.4 trillion ($1.2 billion). Handset revenue grew 26.1 per cent to KRW839 billion.
CFO Lee Hyuk-joo said 5G customers continued to increase, with ARPU and service revenue growing due to the launch of specific services for the technology, suitable for customers’ changing needs.
Due to a significant jump in capex to expand 5G coverage and higher marketing expenses, net profit dropped 32.1 per cent to KRW104.5 billion.
ARPU fell 3.2 per cent to KRW31,217.
The operator closed the quarter with 875,000 5G subs and nearly 15 million in total. With 5G subs accounting for 5.9 per cent of its total, LTE penetration dropped to 90 per cent from 94 per cent in Q3 2018.
Capex jumped 169 per cent to KRW784 billion, with wireless spending increasing 17-times and representing 70 per cent of the total.Subscribe to our daily newsletter Back