"Home and Budget Phone Subscribers Net Increase" LG Hello Q2 Operating Profit 10.4 Billion KRW... 9% YoY Increase

[Asia Economy Reporter Eunmo Koo] LG HelloVision achieved improved performance in the second quarter as subscribers continuously increased in its home business sectors such as TV and internet, as well as in the MVNO (Mobile Virtual Network Operator) business, while revenue in the media and rental sectors also grew.

LG HelloVision announced on the 6th through a public disclosure that its consolidated operating profit for the second quarter of this year was 10.4 billion KRW, a 9.0% increase compared to the same period last year. Revenue for the same period also rose by 0.7% to 272 billion KRW. Net profit reached 6.129 billion KRW, up 6.1%.

By segment, revenue from the home business sector recorded 169.2 billion KRW (TV 137.5 billion KRW, internet 28.1 billion KRW, internet phone 3.7 billion KRW), and MVNO revenue reached 44 billion KRW (service revenue 38.4 billion KRW, device revenue 5.7 billion KRW), continuing its upward trend. Other revenue, including media and rental, increased by 31.7% from the previous quarter to 58.7 billion KRW.

In the home business sector, digital cable TV subscribers increased for the second consecutive quarter, and internet subscribers continued to grow for six consecutive quarters. LG HelloVision stated, “The synergy with LG Uplus to improve broadcasting and internet quality and secure price competitiveness was effective,” adding, “Achieving net subscriber growth in both broadcasting and internet is a meaningful accomplishment in the cable TV industry.”

The MVNO sector also saw net subscriber growth for the third consecutive quarter. This is attributed to the growth of the budget phone market centered on young consumers, driven by increased demand for non-face-to-face subscriptions and price competitiveness. The LTE ratio (82%) also reached its highest level.

The increase in operating revenue in the other revenue sector was driven by growth in the media business segment due to investments in flagship content. Awareness of local channels rose mainly through new original content, leading to increased local advertising revenue. The rental sector also contributed to growth by continuing the effects of launching “Original Equipment Manufacturer (OEM) manufactured products.”

Jae-yong Ahn, CFO (Chief Financial Officer) of LG HelloVision, said, “Despite the COVID-19 situation, we are accelerating qualitative and quantitative growth by recording net subscriber increases in digital TV, internet, and budget phones,” adding, “Based on synergy with LG Uplus, we will strengthen the core competitiveness of the home business sector and enhance profitability in new business sectors to continuously increase corporate value.”

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