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LG Uplus (XKRX:032640) Gross Margin % : 78.52% (As of Dec. 2024)


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What is LG Uplus Gross Margin %?

Gross Margin % is calculated as gross profit divided by its revenue. LG Uplus's Gross Profit for the three months ended in Dec. 2024 was ₩2,946,940 Mil. LG Uplus's Revenue for the three months ended in Dec. 2024 was ₩3,753,205 Mil. Therefore, LG Uplus's Gross Margin % for the quarter that ended in Dec. 2024 was 78.52%.


The historical rank and industry rank for LG Uplus's Gross Margin % or its related term are showing as below:

XKRX:032640' s Gross Margin % Range Over the Past 10 Years
Min: 72.24   Med: 79.39   Max: 80.93
Current: 79.99


During the past 13 years, the highest Gross Margin % of LG Uplus was 80.93%. The lowest was 72.24%. And the median was 79.39%.

XKRX:032640's Gross Margin % is ranked better than
90.46% of 346 companies
in the Telecommunication Services industry
Industry Median: 50.445 vs XKRX:032640: 79.99

LG Uplus had a gross margin of 78.52% for the quarter that ended in Dec. 2024 => Durable competitive advantage

The 5-Year average Growth Rate of Gross Margin for LG Uplus was 1.80% per year.


LG Uplus Gross Margin % Historical Data

The historical data trend for LG Uplus's Gross Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

LG Uplus Gross Margin % Chart

LG Uplus Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Gross Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 77.79 79.39 80.93 80.02 79.99

LG Uplus Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Gross Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 76.09 79.77 83.89 78.07 78.52

Competitive Comparison of LG Uplus's Gross Margin %

For the Telecom Services subindustry, LG Uplus's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


LG Uplus's Gross Margin % Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, LG Uplus's Gross Margin % distribution charts can be found below:

* The bar in red indicates where LG Uplus's Gross Margin % falls into.


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LG Uplus Gross Margin % Calculation

Gross Margin is the percentage of Gross Profit out of sales or Revenue.

LG Uplus's Gross Margin for the fiscal year that ended in Dec. 2024 is calculated as

Gross Margin % (A: Dec. 2024 )=Gross Profit (A: Dec. 2024 ) / Revenue (A: Dec. 2024 )
=11699032 / 14625198
=(Revenue - Cost of Goods Sold) / Revenue
=(14625198 - 2926166) / 14625198
=79.99 %

LG Uplus's Gross Margin for the quarter that ended in Dec. 2024 is calculated as


Gross Margin % (Q: Dec. 2024 )=Gross Profit (Q: Dec. 2024 ) / Revenue (Q: Dec. 2024 )
=2946940 / 3753205
=(Revenue - Cost of Goods Sold) / Revenue
=(3753205 - 806265) / 3753205
=78.52 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.


LG Uplus  (XKRX:032640) Gross Margin % Explanation

Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.

Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %

1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key

LG Uplus had a gross margin of 78.52% for the quarter that ended in Dec. 2024 => Durable competitive advantage


Be Aware

If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.


LG Uplus Gross Margin % Related Terms

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LG Uplus Business Description

Traded in Other Exchanges
N/A
Address
LG Uplus Tower, 82, Namdaemunno 5-ga, Seoul, KOR, 100-095
LG Uplus is a Korean telecommunications operator selling mobile and fixed-line products. It entered the Korean mobile market in 1996 as LG Telecom by acquiring a mobile license, then building out a mobile network. Parent company LG Corp. merged LG Telecom with LG Dacom and LG Powercom in 2010 to add fixed-line and internet capabilities to the existing mobile business and changed its name to LG Uplus that same year. The firm competes against KT and SK Telecom, which were formed from the previously state-owned monopoly, Korea Telecom. Given that KT and SKT had incumbent telecom businesses before LG Uplus started its business, LG Uplus has lower market shares than the other two in the key telecom services.

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