LG Uplus Corp., South Korea’s No. 3 mobile carrier, is expected to sustain strong profit streak in the second half thanks to competitive 5G contents.

The company due to release third-quarter report next week is projected to have earned 228.5 billion won (202.3 million) in consolidated operating income during the July-September period, according to market analysts’ consensus estimate gathered on Sunday. The income would have gained 46.6 percent a year ago, while sales added 4 percent to 3.4 trillion won.

On Monday, its stock closed 1.28 percent lower at 11,600 won.

LG Uplus has been a winner throughout the year, said Kim Hong-sik, an analyst at Hana Financial Investment. The company has added average revenue per user (ARPU) in mobile wireless services as well as the number of subscribers, Kim added.

It outperformed its bigger two rivals since the fourth quarter last year with a competitive edge proven on the 5G network. Its income soared 75 percent in the fourth quarter of 2019, 11.5 percent in the first quarter of 2020, and 59.2 percent in the second quarter.

Its profit has been driven by 5G and internet TV businesses. The company that accounts for 22 percent of the country’s wireless service market has won 24 percent of the 5G service segment, which carries higher profits than regular wireless service products.

The company is projected to see one-fifth of its customers subscribed to 5G by the end of this year. Its share in the budget wireless service market already has expanded to 20 percent from 12 percent claimed in the first half of last year.

Internet protocol TV (IPTV) service business is also on steady growth. The ultra-high definition (UHD) video-on-demand views has averaged 40,000 per month so far this year, up sharply from 10,000 since it expanded UHD contents at its IPTV service in line with ever-growing demand from people forced to stay home due to ongoing Covid-19 outbreaks. Market experts estimate the company’s revenue from IPTV business to top 1 trillion this year, as it had last year.

The 5G service business in overseas markets also has been prospering. Its 5G content exports so far amount to $10 million.

On top of income growth, LG Uplus is generous to its investors. The wireless carrier has maintained a dividend policy of paying out 30 percent of net income since 2014.

By Lee Seung-yoon and Cho Jeehyun

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