LG HelloVision Q1 Operating Profit 7.5 Billion KRW...42.5% Decrease YoY

[Asia Economy Reporter Koo Chae-eun] LG HelloVision announced on the 8th that it recorded sales of 258.9 billion KRW, operating profit of 7.5 billion KRW, and net profit of 4.3 billion KRW in the first quarter.

Sales decreased by 16.7 billion KRW (6.0%) compared to the same period last year, and operating profit fell by 5.5 billion KRW (42.5%) year-on-year.

Net profit turned positive at 4.3 billion KRW. Although this is a 3.2 billion KRW (43.3%) decrease compared to the same period last year, it marked a turnaround from the net loss in the previous quarter. This was the result of improving ARPU (Average Revenue Per User) through quality enhancement via picture quality improvement and channel expansion, expansion of Giga Internet coverage, and introduction of kids’ content.

Cable TV ARPU was 7,408 KRW, an increase of 86 KRW compared to the previous quarter. Internet ARPU also reached 11,171 KRW, marking the highest level since the fourth quarter of 2017. Quality competition, such as expanding content and improving speed and picture quality, led to consumer choice and increased the ‘average revenue per subscriber.’ MVNO ARPU slightly decreased to 21,978 KRW.

The number of Cable TV subscribers was 4,155,000, down by 2,000 from the previous quarter. Despite intensified competition in paid broadcasting, subscribers turned to net growth from March, maintaining the total number of subscribers. This is the first time in a year that monthly subscribers have shown net growth.

Internet and MVNO subscribers slightly decreased but showed growth potential. Internet subscribers were 757,000, down by 4,343 from the previous quarter, but from March, subscribers turned to net growth, and the proportion of Giga Internet exceeded 52%. MVNO subscribers were 663,000, down by 35,000 from the previous quarter, but the LTE subscription rate reached 74.6%, setting a new record again.

An Jae-yong, Executive Director (CFO) of LG HelloVision, said, “The M&A has been successfully completed, and we are improving our structure by securing fundamental business competitiveness.” He added, “With strengthened synergy with LG Uplus, subscribers will increase, ARPU will rise further, and we will generate substantial financial results.”

This content was produced with the assistance of AI translation services.