South Korea-based LG U+ highlights a recovery in roaming revenue in the final quarter of 2023, a surge in MVNO subscribers and strong device sales, with overall service revenue growth remaining at 2% in 2024. I predict that.
In an earnings call, CFO Lee Hyeok-Joo explained the slowdown in 5G growth and said he expects the company’s mobile business to be “quite challenging” and aims to improve profitability by expanding digital channels. He added that
Mr Lee added that the launch of hyper-personalized tariff plans had attracted new customer groups, while roaming revenue had more than doubled year-on-year due to a surge in international travelers in the country.
Net profit fell 34% to 105.2 billion won ($79.3 million), due to a 42% increase in amortization expenses. Operating revenue increased by 5.8% to 3.8 trillion won.
Wireless service revenue increased by 1.6% to 1.5 trillion won, even though ARPU decreased by 13.4% to 25,195 won.Mobile device revenue increased by 22% to 811.1 billion won
The company’s mobile user base increased by 17.2 percent to 18.8 million, and its 5G subscribers increased by 16.2 percent to 7 million, accounting for 37.5 percent of the total.
MVNO users increased by 63% to 6.43 million. IoT connections increased by 80% to 10.3 million.
The enterprise infrastructure sector increased by 7.2% to 523.9 billion won. Capital investment for the full year increased by 3.9% to 2.5 trillion won.
