Lg Uplus Corp · KRX:032640

Lg Uplus — Q1 2015 Earnings Presentation

28 slides from Lg Uplus's earnings presentation, May 14, 2015

  1. Slide 1: LG Uplus IR Presentation

    LG Uplus IR Presentation New Life Creator

  2. Slide 2: Disclaimer

    Disclaimer This presentation contained herein includes forward-looking statements in respect to future plans, prospects, and performances of LG Uplus. The aforementioned forward-looking statements are influenced by changes in the management environment and relative events, and by their nature, these

  3. Slide 3: Overview: 2015 Guidance

    Overview 2015 Guidance Service Revenue CAPEX / EBITDA  KRW 8.65 trillion, up 3.2% YoY  CAPEX : KRW 1.7 trillion, down 23% YoY Unit : KRW in trillion Unit : KRW in billion 8.65(E) EBITDA CAPEX 8.38 2,212 7.83 +3.2% 1,857 2,082 +7.0% 1,700(E) 7.01 1,680 +11.8% 1,568 +9.5% 1,520 2012 2013 2014 2015E

  4. Slide 4: Overview: 1Q15 Review

    Overview 1Q15 Review  Service Revenue recorded KRW 2.1 trillion, up 4.6% YoY  Operating Income recorded KRW 154.7 billion, up 36.7% YoY Service Revenue Operating Income (Unit: KRW billion) Unit : KRW in billion Unit : KRW in billion Cla ssif ica tion 1Q14 4Q14 1Q15 YoY QoQ Revenue 2, 780. 4 2, 683

  5. Slide 5: Overview: 1Q15 Review - Marketing Expense

    Overview 1Q15 Review Marketing Expense  1Q Marketing Expense recorded KRW 503.8 billion, down 8.6% YoY and 2.8% QoQ Unit : KRW in billion New Signings 10 800.0 Marketing Expense ↑18% QoQ Mkt. Exp. / Service Revenue 600.0 551.1 549.7 518.2 503.8 6 477.2 1Q14 2Q14 3Q14 4Q14 1Q15 27.3% 400.0 26.6% SAC

  6. Slide 6: Overview: MNP / Churn

    Overview MNP / Churn MNP Figure Churn Trend  Changes in regulation stabilizing MNP market  Churn at its lowest after the enactment of HDA Unit : in thousand LG U+ SKT KT 3.5% 3.4% 3,000 2,706 3.1% 2,500 2,359 2,388 2,266 3.0% 2.9% 2,109 2,000 2.6% 1,803 1,596 2.7% 2.5% 1,429 2.5% 2.6% 1,500 1,280

  7. Slide 7: Wireless: 1Q15 Review

    Wireless 1Q15 Review Wireless Revenue  1Q Wireless Revenue recorded KRW 1.3 trillion, up 4.0% YoY, down 6.6% QoQ (Unit: KRW billion) Wireless Subscriber Cla ssif ica tion 1Q14 4Q14 1Q15 YoY QoQ Wireless Revenue 1, 248. 5 1, 390. 9 1, 298. 6 4. 0% -6. 6% Unit : subscriber in thousand Service Revenue

  8. Slide 8: Wireless: LTE Penetration

    Wireless Subscriber Growth LTE Penetration  LTE subscriber portion expected to be the highest among Korean MNO, targeting more than 80% by year end 100% LG U+ SKT KT Average 80~85%(E) 77% 80% 75% 65% 65% 63% 63% 62% 60% 61% 52% 58% 43% 49% 48% 40% 30% 28% 20% 24% 6% 2% 0% 0% 2011 2012 2013 2014 201

  9. Slide 9: Wireless: MNP New Addition Trend and 3G Market Share

    Wireless Subscriber Growth MNP New Addition Trend 3G Market Share  Sustaining qualitative subscriber growth in MNP market  10.3 million 3G users remained as of 1Q 2015 KT MNP New Adds M/S 4.2 million Subscriber M/S 30% 30%(E) 29% 41% LG U+ 28% 0.2 million 2% 24% 10.3 million 20.0% 19.9% 19.7% 18.9

  10. Slide 10: Wireless: Quarterly MNP Net Adds

    Wireless Subscriber Growth Quarterly MNP Net Adds  Continuously drive qualitative and quantitative subscriber growth in the MNP market LG U+ SKT KT Unit : subscriber in thousand 198 184 184 141 145 115 120 116 94 91 81 67 106 63 44 40 41 34 28 20 12 15 -4 -40 -11 -13 -13 -21 -19 -26 -33 -36 -30 -38

  11. Slide 11: Wireless: Quarterly MNP Net Adds (Accumulated)

    Wireless Subscriber Growth Quarterly MNP Net Adds (Accumulated)  LG Uplus & MVNO showing robust subscriber growth in the MNP market SKT KT LGU+ MVNO Unit : subscriber in million 1.3 1.2 1.2 1.2 1.1 1.1 1.0 0.9 0.8 0.6 0.5 0.3 0.2 0.1 0.1 0.0 0.0 -0.0 -0.1 -0.3 -0.4 -0.5 -0.6 -0.8 -1.0 -1.1 -1.3 -1.

  12. Slide 12: Wireless: Service ARPU

    Wireless ARPU Service ARPU  Service ARPU recorded KRW 35,792, up 4.5% YoY with LTE subscriber mix increase ARPU(1) (1Q15) LG U+ SKT KT 37,449 Unit : KRW 36,313 LTE 43K 37,000 36,673 36,417 35,792 36,013 3G S/P 23K 35,650 36,156 35,362 35,636 F/P(2) 14K 34,909 35,388 35,309 35,283 34,012 34,829 33,7

  13. Slide 13: Wireless: Market Share

    Wireless Market Share MNO Subscriber M/S Wireless Service Revenue M/S  Acquiring MNO subscribers in the market  Focusing on high-end LTE users in the market LG U+ SKT KT LG U+ SKT KT 54% -1%p 52% -5%p 51% 50% 50% 50% 50% 49% 30% 29% 29% 29% 29% 28% 29% 28% 21% 22% 20% 21% 21% +4%p 20% 19% +2%p 18%

  14. Slide 14: Wireless: Data Trend

    Wireless Data Trend Average Usage Data Usage  VIDEO LTE contributing to higher avg. data consumption  VIDEO is the most popular content in LTE 9 U+HDTV U+LTE Industry Avg. SNS 8 8 GB 16% Web VIDEO 6 15% 49% 5 4% 4 GB Apps, Etc. 16% 3.4GB 3 Multimedia 2 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14

  15. Slide 15: LTE Service

    Wireless LTE Service UflixMovie U+HDTV Personalized mobile theatre No. 1 Mobile IPTV in Korea, with 7.4 million users  OFFERING HBO CONTENTS  4 channel multi-view & Pop-up play  The largest movie library in Korea  90 live channels & 70,000+ PPV contents  More than 18,000 movie selections  Real

  16. Slide 16: Wireless: LTE Plans

    Wireless LTE Plans Tariff Schemes  Offering various different monthly plans with differentiated LTE Value Added Services (VAS) Unlimited Data 89 (72) Uflix Unlimited Voice 85 (67) U+HDTV 124 (99) Unlimited 80 (62) U+Box 99 (76) 16GB + KRW 11,000 Basic LTE 89 (66) 12GB Launched 2Q 2014 79 (58) 8GB 6

  17. Slide 17: Wireline Home: TPS (Consolidated)

    Wireline Home TPS (Consolidated)  TPS Revenue up by 8.0% YoY and 2.0% QoQ from IPTV subscriber and ARPU growth (Unit: KRW billion) TPS Revenue Cla ssifica tion 1Q14 4Q14 1Q15 YoY QoQ Unit : KRW in billion TPS Revenue 323. 8 343. 0 349. 7 8. 0% 2. 0% IPTV 85.9 108.3 113.9 32.6% 5.2% 343.0 349.7 323.

  18. Slide 18: Wireline: IoT @ Home

    Wireline IoT @ Home IoT @ Home  Expanding IoT experience within the boundary of home going forward Converged Home Communication & Services Home Security Home Bundling Giga Wi-Fi CCTV MomCA U+ Gas Lock Wi-Fi G Home CCTV HomeBoy ARPU Upselling VAS Broadband 070Player Triple Play Services 18

  19. Slide 19: Wireline Home: IPTV, Broadband, VoIP

    Wireline Home IPTV Broadband 2,500 50% IPTV Subs. ■ Paid TV M/S (as of March 2015) HVC % 2,040 45% Giga 1,949 2,000 40% LG U+ KRW 19,000 → KRW 25,000 / 30,000 35% Cable SO 1,550 1,500 30% 8% SKT 25% 11% 1,054 1,000 20% 14% 25.9 52% Up to 1Gbps IoT Bundle Home IoT Korea’s First 12% 15% million Giga S

  20. Slide 20: Wireline Data & Telephony

    Wireline Data & Telephony (Unit: subscriber in thousand) Cla ssif ica tion 1Q14 4Q14 1Q15 YoY QoQ TPS Subscribers 8, 881 9, 387 9, 540 7. 4% 1. 6% IPTV Data Revenue up by 2.1%1,949 1,672 YoY and2,040 down by22.0% 5.1% QoQ4.7% from e-Biz growth and decreased NI Revenue Broadband 2,963 3,014 3,050 2.

  21. Slide 21: Wireline Payment

    Wireline Payment  PAYNOW (one-click payment solution) with +100K merchants, on top of credit card/mobile phone payment, real time bank transfer is available supporting various modes of payments on PC & mobile platform Online Shopping Market PG Market Unit : KRW in trillion Unit : KRW in billion 60.

  22. Slide 22: Appendix: Non-operating Balance / CAPEX

    Appendix Non-operating Balance / CAPEX Non-operating Balance / CAPEX (Consolidated)  Non-operating Balance down by 20.5% YoY and 38.0% QoQ Non-operating Income & Expense (U nit: K RW bil l ion) Cla ssif ica tion 1Q14 4Q14 1Q15 YoY QoQ Non-operating Income : Down 11.5% YoY and 41.9% QoQ N on-opera t

  23. Slide 23: Appendix: Statements of Financial Position

    Appendix Statements of Financial Position Statements of Financial Position (Consolidated)  Debt to Equity Ratio improved YoY and QoQ from Retained Earnings improvement and lower Debt level (Unit: KRW billion) Statements of Financial Position Cla ssif ica tion 2014. 03 2014. 12 2015. 03 YoY QoQ Tota

  24. Slide 24: Appendix: Statements of Income / Financial Position (Consolidated)

    Appendix Statements of Income / Financial Position (Consolidated) (Unit: KRW billion) Cla ssif ica tion 1Q14 4Q14 1Q15 YoY QoQ Cla ssif ica tion 2014. 03 2014. 12 2015. 03 YoY QoQ Revenue 2, 780. 4 2, 683. 7 2, 556. 0 -8. 1% -4. 8% Current Assets 2, 607. 2 2, 489. 9 2, 465. 5 -5. 4% -1. 0% Service R

  25. Slide 25: Appendix: Statements of Income / Financial Position (Separate)

    Appendix Statements of Income / Financial Position (Separate) (Unit: KRW billion) Cla ssif ica tion 1Q14 4Q14 1Q15 YoY QoQ Cla ssif ica tion 2014. 03 2014. 12 2015. 03 YoY QoQ Revenue 2, 785. 0 2, 688. 4 2, 550. 2 -8. 4% -5. 1% Current Assets 2, 582. 5 2, 418. 2 2, 388. 2 -7. 5% -1. 2% Service Reven

  26. Slide 26: Appendix: Subscriber Trend

    Appendix Subscriber Trend (Unit: subscribers in thousands, KRW) Cla ssif ica tion 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 Wireless Subscribers 9, 554 9, 852 10, 020 10, 162 10, 363 10, 521 10, 713 10, 874 10, 875 11, 008 11, 159 11, 267 11, 449 Net Addition 163 298 168 141 2

  27. Slide 27: Appendix: Contact

    Appendix Contact [email protected] Jay Park +82-70-4080-6915 [email protected] Claire Park +82-70-4080-8058 [email protected] Daniel Choe +82-70-4080-1620 [email protected] Irene Huh +82-70-4080-3037 [email protected] 27

  28. Slide 28: LG U+

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