South Korea-based LG Uplus highlighted a rebound in roaming revenue, surge in MVNO subscribers and brisk handset sales in the final quarter of 2023, forecasting overall service revenue growth to remain at 2 per cent in 2024.
In its earnings call CFO Lee Hyeok-Joo explained with slowing 5G growth, the company expects “quite a bit of challenge” for its mobile business, adding by expanding digital channels it aims to enhance profitability.
Lee added the launch of hyper-personalised rate plans is attracting new customer segments, while roaming revenue more than doubled year-on-year, aided by a spike in international travellers in the country.
Net profit fell 34 per cent to KRW105.2 billion ($79.3 million), impacted by 42 per cent higher amortisation expenses. Operating revenue grew 5.8 per cent to KRW3.8 trillion.
Wireless service revenue increased 1.6 per cent to KRW1.5 trillion, despite a 13.4 per cent drop in ARPU to KRW25,195. Handset revenue grew 22 per cent to KRW811.1 billion
Its mobile user base grew 17.2 per cent to 18.8 million, with 5G subs up 16.2 per cent to 7 million, or 37.5 per cent of its total.
MVNOs users jumped 63 per cent to 6.43 million. IoT connections increased 80 per cent to 10.3 million.
Its enterprise infrastructure unit booked 7.2 per cent growth to KRW523.9 billion. Full-year capex rose 3.9 per cent to KRW2.5 trillion.