[Concall] LG Uplus, "5G Break-even Point Based on 5 Million Subscribers... Achievable in Second Half of Next Year"

[Asia Economy Reporter Eunmo Koo] LG Uplus CFO (Vice President) Hyukju Lee stated during the Q4 2020 earnings conference call on the 3rd, in response to a question about the turnaround point related to 5G, “As I mentioned before regarding the 5G breakeven point, it is expected to be achievable if we maintain an average annual subscriber base of around 5 million,” adding, “Considering the average revenue per user (ARPU) and contribution margin of 5G service subscribers, as well as other fixed costs such as network-related tangible asset depreciation, frequency depreciation, and mobile-related expenses, we are confident that an average of about 5 million subscribers annually will allow us to break even.”

He continued, “With the release of Apple’s iPhone 12 in Q4, the number of 5G subscribers increased significantly, and considering this year’s device lineup, we expect close to 4 million subscribers,” adding, “Even conservatively, we believe that by the second half of next year, we will be able to discuss the breakeven point.”

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