LG U+ Vice Chairman Kwon Young-soo  (Photo:LG U+)

LG U+ posted 2,712.8 billion won in sales and 170.6 billion won in operating profit in the first quarter of 2016, representing a 6.85 percent surge and a 10.3 percent jump over the same period last year, respectively. That is a performance record LG U+ Vice Chairman Kwon Young-soo got for the first time since he took the helm at the telecom service provider. LG U+’s charming 1st quarter performance was owed to the efficient execution of marketing costs, coupled with market stabilization, company officials said. 

LG U+’s 1st quarter performance represents a 5.2 percent rise in sales and a 50.8 percent surge in operating profit over the previous quarter.

LG U+ saw 1st quarter net profit jump to 110.1 billion won, a 33.9 percent surge over the same period of last year partly thanks to a rise in non-operation income. The company recorded 573.6 billion won in EBITDA, a 4.8 percent rise during the same period. LG U+ chalked up 1320.6 billion won in mobile revenues, up 1.3 percent over the first quarter of 2015 thanks to a rise in LTE subscribers. It saw mobile service revenues rise 3.2 percent to 1225.7 billion won over the same period. 

LG U+’s introduction of such programs as the so-called Simkung Club in which new cellular phone buyers can receive compensations on their used phones have worked out, company officials said. 

LG U+ saw mobile subscribers jump 3.2 percent to about 12 million during the same period. LTE subscribers accounted for 10.19 million or 84.2 percent of the total. A rise in LTE subscribers was attributed to the introduction of such products as the “LTE Video Portal.”

LG U+ on the Move in IoT Service Market

LG U+, which has designated the Internet of Things (IoT) as a new growth engine, is stepping on the gas to explore new services in the IoT sector, penetrating people’s daily lives.

With determination and concentration, LG U+ has a strategy to walk the walk in such of core business segments as video and electronic settlements, making them sustainable profit models.

The Korean financial information company FnGuide said on Feb. 18 that LG U+ posted 632.3 billion won in operating profit in 2015, up 9.7 percent over the previous year, as well as 351.2 billion won in net profit, a 54.5 percent jump. The telecom service provider’s operating profit is projected to grow to 701 billion won this year.

LG U+ promises to take an omnidirectional approach to diversify the IoT business arena.

In the latest move to make an aggressive foray into the IoT field, LG U+ has released the LTE Magic Mirror that can analyze types of human skin via IoT technologies in cooperation with the full-scale interior company Hanssem. The LTE Magic Mirror can recommend skin management tactics and cosmetics tailored to meet a customer’s particular needs according to the measured skin type.

LG U+ plans to nurture such industry IoT segments as smart factory and smart building as growth engines that can create values for customers by differentiating itself from other rivals in the industry and public fields.

The company strives to develop IoT services with diverse service developers and manufacturing companies while building an IoT ecosystem with SMEs and venture companies.

LG U+ has already invested $2 million and acquired a stake in Jibo, a U.S. intelligent robot venture company, which is developing the world’s first social robot for home, “Jibo.” If the development of the robot with intelligence and emotions is completed, it will be commercialized in the United States early next year.

The company is working on the launch of such new businesses as IoT total solutions outfitted with electric vehicles and electric ships in collaboration with U.S. EV developer, Leo Motors, Inc.

“The LoT market is now expanding into diverse services based on big data, and innovative changes will like take place in such areas as self-driving, robots, other systems and sensor-based IoT platform solutions in the years to come,” LG U+ officials said.

LG U+ plans to realize IoT services closer to customers’ daily lives by collaborating in diverse fields.

LG U+ has acquired a stake in Jibo, a U.S. intelligent robot venture company, which is developing the world’s first social robot for home, “Jibo.”