LG Uplus 2Q sales 3.84T won, est. 3.73T won

LG Uplus 2Q sales 3.84T won, est. 3.73T won

LG Uplus, a leading South Korean telecommunications company, has reported strong second quarter (2Q) sales, exceeding market expectations. The company's revenue for the quarter reached 3.84 trillion won, surpassing the estimated 3.73 trillion won. This performance marks a significant milestone for LG Uplus, which has been actively implementing shareholder return measures and performance-oriented strategies.

The company's stock price has shown notable growth, rising 3.58% over the past week. This increase is attributed to the burning of treasury stocks, which has narrowed the gap in foreign ownership within 1% of SK Telecom. According to the Korea Exchange, LG Uplus's stock price exceeded the KOSPI's fluctuation rate during the same period, while competitors like KT and SK Telecom also experienced increases in their market shares [1].

LG Uplus's shareholder return measures have been a key driver of its stock performance. The company has been incinerating its own shares and has begun a share buyback program worth 80 billion won. These initiatives have attracted significant attention from the market, with foreign investors net purchasing LG Uplus shares worth 45.8 billion won in the past month [1].

The company's strong financial performance is also reflected in its operating profit forecast for the second quarter of this year. LG Uplus is expected to report a consolidated operating profit of 278.6 billion won, representing a 9.68% increase from the same period last year [1].

Choi Min-ha, a researcher at Samsung Securities, attributes LG Uplus's subscriber growth to hacking incidents by competitors and the cleanup of low-yield businesses. He expects the company to enter a full-fledged profit turnaround this year through profitability-oriented strategies [1].

In conclusion, LG Uplus's strong 2Q sales performance and shareholder return measures have positioned the company as a leader in the South Korean telecommunications market. The company's initiatives to narrow the gap in foreign ownership and attract foreign investment funds are likely to continue driving its growth and stock performance.

References:
[1] https://www.mk.co.kr/en/stock/11386137