LG HelloVision 3Q Operating Profit 9.2 Billion KRW... Profit Improvement Synergy with LG U+

Q3 Revenue 261.7 Billion KRW, Operating Profit 9.2 Billion KRW
Increase in Digital Cable and Internet ARPU

[Asia Economy Reporter Han Jinju] LG HelloVision's operating profit in the third quarter significantly increased compared to the same period last year. Synergies with LG Uplus are becoming visible in infrastructure and content such as the internet.

On the 5th, LG HelloVision announced that its third-quarter sales reached 261.7 billion KRW, operating profit was 9.2 billion KRW, and net profit was 5.9 billion KRW. While sales decreased by 4.3% compared to the same period last year, operating profit increased by 129.4%, and net profit turned positive.

Operating profit and net profit turned positive in the third quarter, and profitability improvement is becoming full-fledged. This is the result of gradually increasing cost efficiency and management efficiency by utilizing LG Uplus's infrastructure and content.

Digital cable's average revenue per user (ARPU) increased by 12 KRW to 9,460 KRW. Cable TV ARPU was 7,139 KRW, down 25 KRW from the previous quarter. Although the release of new VODs has been limited due to the COVID-19 pandemic, ARPU is believed to have increased as time spent at home has increased due to remote work and online classes.

The number of cable TV subscribers in the third quarter was 4.152 million, down 3,000 from the previous quarter. Despite intensified competition in paid broadcasting and the prolonged spread of COVID-19, subscribers were retained. The number of MVNO (Mobile Virtual Network Operator) subscribers was 612,000, down 18,000 from the previous quarter. The LTE subscription rate is 77.3%. MVNO ARPU slightly decreased to 21,599 KRW.

Internet ARPU reached 11,663 KRW, the highest in four and a half years. This reflects the result of overcoming product lineup disadvantages by expanding nationwide gigabit internet coverage through collaboration with LG Uplus.

LG HelloVision has been promoting quality improvement through picture quality enhancement and channel expansion, expanding gigabit internet coverage, and introducing kids' content Idleulnara. Going forward, it plans to further strengthen product and service competitiveness while focusing on expanding synergies.

Chief Financial Officer Jae-yong Ahn, Executive Director of LG HelloVision, said, “Synergies with LG Uplus are gradually occurring, and the damaged sales force is also being restored. After the adaptation period, we will secure growth momentum through new businesses on a stable performance base.”

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