Morning and good evening. Thank you all for joining this conference call. Now we will begin the conference of the fiscal year 2022 third quarter earnings results by LG Uplus. This conference will start with a presentation followed by a divisional Q&A session. Our call is being webcasted on our homepage so that you can follow the conference simultaneously. Today's conference call will be presented for one hour, and due to schedule, we would appreciate if questions are limited to two per person. Now we will begin the conference of the fiscal year 2022 third quarter earnings results by LG Uplus.
Good afternoon. I am Seong Hyun Mo, head of IR at LG Uplus. We would like to start with LG Uplus's Q3 2022 earnings presentation. Please refer to our Q3 earnings presentation and note that revenue breakdown of each business and details of operating expenses are on the basis that excludes LG HelloVision, which we're presenting for the benefit of ease of comparison. As a disclaimer, all of the projections cited today may change, subject to overall macroeconomic and market backdrop. Please also note that we will be providing consecutive interpretation for the benefit of our overseas investors. We will first begin with our Q3 performance highlights, then move on to the Q&A. With that said, I will now turn it over to our CFO, Lee Hyuk-ju, who will run through Q3 2022 earnings and business results. Good afternoon. I'm CFO Lee Hyuk-ju.
I would like to thank the analysts and investors for joining third quarter 2022 earnings release for LG Uplus. Over the years, LG Uplus focused its efforts behind its core telco business, driving high level of profitability. We also endeavored to provide clearly distinct customer experience, and now we are ready to embark on Uplus3.0 as we transition to the platform business. The aim of LG Uplus 3.0 is to transform ourselves into an innovative digital company, extending new digital experiences to users and broadening business and service scope underpinned by data. By expanding digital customer touch points and based on deep understanding of customers underpinned by data, our vision is to create a platform where users come and stay for longer.
To that end, we plan on setting up three new businesses, which are lifestyle, play, nurture and care, and the fourth platform of Web 3.0, representing future-proof technologies so as to lay the basis for customer experience innovation. First and foremost, through the lifestyle platform underpinned by telco services that enrich our customers everyday life, we can acquire customer data on the individual's interests and lifestyle patterns and build a connection with key services that millennials and Gen Z's appreciate, embodied in keywords such as subscription and routine services. The play platform will comprise of services of various formats that people can enjoy during their leisure time, offering expanded OTT lineup and contents. We plan on developing a solution that will completely innovate viewing experience by integrating real-time Uplustv channel and the OTT data.
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Also, for the nurture and care platform, we will be upgrading the Uplus Kids World, which is Korea's top service for families with young children into a mobile-based Kids OTT. We plan to explore new business models that can offer tangible value and benefits to users for each of the platform based on next-generation technology of Web 3.0.
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Next, on Q3 2022 financial highlights. Q3 consolidated service revenue was up 2% year-on-year to KRW 2,840 billion, while standalone service revenue reported KRW 2,603.9 billion, up 1.7% year-over-year.
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Consolidated Q3 operating profit was up 3% year-over-year and 14.8% QoQ, reporting KRW 285.1 billion, with cumulative operating profit as of Q3 reported KRW 794.7 billion.
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Q3 consolidated operating expense was up 0.5% year-over-year and 2.6% quarter-over-quarter to KRW 3,216.1 billion.
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Consolidated Q3 EBITDA was up 4.4% quarter-over-quarter to KRW 895.2 billion, and the EBITDA margin against operating revenue dipped by 0.2 percentage points year-over-year and up 0.2 percentage points quarter-over-quarter, recording 25.6%.
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Consolidated Q3 net profit was down 19.1% YoY and up 5.5% QoQ to KRW 170.8 billion, and Q3 cumulative CapEx spend recorded KRW 1,591.7 billion.
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In terms of consolidated basis financial position as of Q3, total assets were KRW 19,378 billion, total liabilities KRW 11,064.7 billion, and total shareholder equity of KRW 8,313.3 billion. On lower liability, an increase in earnings surplus, debt to equity ratio improved by 10.3 percentage points from 143.4% end of last year to 133.1% end of Q3. This ends the report on the business results and financial performance. We now move on to earnings and outlook for each of our businesses.
Park Yong-min.
I will begin with the consumer business. I'm Park Yong-min, in charge of consumer planning. Q3 mobile service revenue was up 1.9% year-over-year to KRW 1,462.2 billion. Mobile subscribers reported 19,473,000, which is up 11.3% year-over-year. Of this subscriber base, 5G subs increased 39.5% year-over-year, reaching 5,732,000, accounting for 50.2% of the total handset subscribers. MVNO subscribers reached 3,602,000, growing 41.4% year-over-year, sustaining the uptrend in volume growth.
Although marketing expense was up 2.7% Q-on-Q on the back of flagship handset launch, we continued to make efficient operational spending amounting to around KRW 564.8 billion, which is flat on a year-over-year basis. Smart home revenue for Q3 was up 3.9% year-over-year and 1.9% quarter-over-quarter, reporting KRW 590.5 billion. Driven by subscriber growth, IPTV revenue was up 1.5% year-over-year to KRW 334 billion, while broadband internet was up 7.1% year-over-year, reporting KRW 256.5 billion on the back of sustained growth of giga internet subscribers.
Subscribers for IPTV and broadband increased 2.7% and 4.6% year-on-year respectively, reporting cumulative subscribers of 5,407,000 and 4,910,000, sustaining the uptrend. Driven by the strategy to transform LG Uplus into a platform provider, moving one step closer into the daily lives of customers, we have embarked on a customer value innovation campaign titled Why Not since last year. In line with such efforts, in July, we introduced Udok, offering an elevated and differentiated customer experience for subscription services, completely relieving customers of any inconveniences and extra widening the gap in customer experience against peers. Udok, the subscription platform, allows people to subscribe to only the services that they want at reasonable price as there is no separate subscription fee.
As subscription is made easy, we believe it can create a completely new customer experience. In August, to provide more choice and lessen the cost burden, we introduced variety of new tariff schemes, including a mid-tier 5G rate plan. The new 5G plan is dubbed 5G Simple+, and it provides 31 GB at monthly fee of KRW 61 thousand. As such, we will continue to work on ways to further enhance user convenience. To better serve increasing number of travelers, we ran a roaming promotion giving 50% price discount. This promotion was intended to attract first-time roaming users at affordable cost, driving steep year-on-year growth in Q3's roaming revenue, which in turn contributed to mobile service revenue.
K-pop 콘텐츠 플랫폼인 idolplus로 변경하고 영어, 중국어, 일본어 등 5개 외국어 지원 웹 서비스를 출시하며 글로벌 시장 공략에 나섰습니다. 지난 수년간 해외 사업자와 콘텐츠 협력을 진행하며 K-pop 콘텐츠에 대한 글로벌 수요를 확인하고 다양한 공연을 해외 송출하며 쌓아온 경험을 기반으로 본 서비스를 론칭하게 되었습니다. 향후 글로벌 Gen Z들에게 아이돌과의 소통 기회를 제공하는 등 아이돌 콘텐츠 그 이상의 가치를 제공하도록 할 예정입니다.
We also transformed Uplus idol Live, a specialized media dedicated to idol and artists into K-pop content platform called idolplus, releasing a web service supporting five different languages including English, Mandarin, Japanese to gear up for global expansion. We decided to launch this service based on our years of experience in streaming and transmitting different types of concerts and performances abroad, during which we saw clearly global demand for K-pop content while working together with global service providers. We plan to offer value above and beyond just the idol related content and provide avenue to global Gen Z's to engage in communications with the artists.
LG Uplus는 앞서 말씀드렸듯이 Why Not 캠페인을 필두로 고객 가치 혁신과 페인 포인트 개선을 위한 노력을 지속해 왔습니다. 그 결과 지난 2분기 역대 최저 1.11%의 해지율을 기록했고, 3분기 역시 그보다 낮은 1%의 해지율을 달성하였습니다.
Following the Why Not campaign, LG Uplus has been steadfast in innovating customer value and improving their pain points. As a result, we saw record low churn rate of 1.11% in Q2, and even lower Q3 number of 1%.
모바일 시장의 급변하는 상황에서 발 빠르게 대처해 온 LG Uplus는 MVNO의 양적 성장을 지속하고 MNO 사업의 고가치 가입자 확대 등 질적 개선으로 향후 추가 성장 동력을 마련하고 있습니다. 여기에 디지털 혁신 기업으로의 전환을 통한 플랫폼 사업으로 올해 남은 기간뿐만 아니라 2023년 역시 컨슈머 사업에 대한 시장의 기대에 부응할 수 있도록 노력하겠습니다.
We have nimbly responded to fast changing mobile market, sustaining the MVNO volume growth while securing traction for incremental growth through quality improvements and high value customer growth for the MNO business. On top of this, by transitioning to an innovative digital company and engaging in platform businesses, we will endeavor to meet market expectations for the consumer business in the remaining year and in 2023.
기업 신사업 그룹장 임장혁 전무입니다.
Next is the B2B infrastructure, and I'm Im Jang-hyuk, SVP of New Enterprise Business.
기업 인프라 사업의 3분기 주요 성과를 말씀드리겠습니다. 3분기 기업 인프라 사업은 전년 동기 대비 1.5% 성장한 3,745억 원을 기록했습니다.
I will run through the key highlights for B2B infrastructure for the third quarter. Q3 B2B infrastructure business reported KRW 374.5 billion, which is up 1.5% year-over-year.
3분기 IDC 사업 매출은 700억 원으로 전년 동기 대비 2.8%의 성장을 이어갔으며, 기업에서는 전년 동기 대비 4.8% 성장하며 1,945억 원의 매출을 기록하였습니다. 솔루션 매출은 전년 동기 대비 4.8% 감소하였으나 솔루션 사업 내 스마트 팩토리, 스마트 모빌리티 등의 신사업이 성장하는 성과를 거두었습니다.
Q3 IDC business revenue was KRW 70 billion, sustaining an uptrend at 2.8% year-on-year growth. While enterprise line business was up 4.8% year-on-year, reporting KRW 194.5 billion. Solutions revenue dipped by 4.8% year-on-year, but we saw growth from new businesses, including smart factory and Smart Mobility.
먼저 LG Uplus는 지난해부터 부산항과 여수광양항 등의 스마트 항만을 구축한 경험을 바탕으로 한진부산컨테이너터미널에 국내 최초로 디지털 트윈 기반 통합 관제 시스템을 구축하였고, 실시간으로 작업자의 안전을 모니터링하는 지능형 항만을 구축하였으며, 울산항만공사와 에코 스마트 항만 추진 업무 협약을 체결하는 등 5G 스마트 항만 솔루션 선도 사업자로서의 입지를 공고히 하고 있습니다.
Based on our experience in building smart ports at Busan Port and Yeosu Kwangyang Port since last year, we built integrated command and control system based on the digital twin for the first time in Korea for Hanjin Busan Container Terminal, setting up an intelligent port, providing real-time safety monitoring of workers. We also executed a memorandum on Eco Smart Port with Ulsan Port Authority, solidifying our position as a leading provider of 5G smart ports.
또한 LG Uplus는 smart factory의 레퍼런스 확대를 위해 대기업뿐만 아니라 중소, 중견기업에 대한 솔루션 확대 및 협력을 이어나갔습니다.
Also, in order to expand smart factory reference sites, we continue to cooperate with not only large companies but also SMEs, offering broader solutions.
먼저 중소기업 고객이 스마트 팩토리 구축에 대한 초기 투자 비용 부담을 덜고 편리하게 공장 상태를 진단하는 클라우드 기반 구독형 서비스로 AI 비전 검사, 모터 진단, 설비 예지 보전 3종의 소솔루션을 확장하였습니다. 제품 품질과 설비 상태를 AI 기반으로 분석하고 진단해 운영과 유지보수 노하우가 부족한 중소기업도 부담 없이 생산 품질 향상을 기대할 수 있고, Uplus의 MEC 센터와 고객사 공장이 5G 전용망으로 직접 연결되는 만큼 통신의 보안도 뛰어난 것이 특징입니다.
To alleviate SMEs burden on making the initial investment for building smart factories, we offer cloud and subscription-based inspection service for factory checkups and expanded solution offerings to include three solutions, which are AI Vision Inspection, motor diagnostics, and predictive maintenance. By using AI-powered analytics for equipment and facilities and for ensuring product quality, SMEs who lack operational and maintenance know-how can improve their manufacturing quality while enjoying outstanding network security as the factory is directly connected via 5G dedicated line to LG Uplus's MEC center.
또한 LG Uplus는 서울테크노파크와 중소, 중견기업의 스마트 공장 구축 지원 및 디지털 혁신을 위한 업무협약을 체결하였습니다. 이번 업무협약을 통해 더 많은 중소, 중견기업들의 LG Uplus만의 고유한 스마트 공장 기술을 선보일 수 있을 것으로 보이며, 전국의 중소 공장들이 혁신을 통해 제조 경쟁력을 높일 수 있도록 지원할 예정입니다.
We also executed a memorandum with Seoul Technopark in order to drive digital innovation and provide support for smart factories to these mid-tier companies. We expect to showcase our proprietary smart factory technologies to many more SMEs through this MOU, thus providing support for them to innovate their factories and enhance manufacturing competitiveness.
이처럼 LG Uplus는 B2C뿐만 아니라 B2B 영역에서도 디지털 혁신 기업으로서의 전환을 이어나가고 있습니다. IDC 등의 기존 사업들 역시 견조한 성장을 지속하는 만큼, 22년 남은 기간에도 신사업의 성장과 아울러 전체 기업 인프라 사업의 성장을 위한 노력을 지속해 나갈 예정입니다.
As shown through these endeavors, LG Uplus is taking the transition into becoming an innovative digital company in not only B2C, but also in the B2B domain. Since our incumbent business, including IDC, continue to show a solid growth, we will exert efforts behind the growth of new businesses and the overall B2B infrastructure business in the remainder of the year.
이상으로 사업별 실적 발표를 마치고 22년 4분기 전망에 대한 CFO 말씀이 있겠습니다.
That ends the earnings update on each of the business lines. We will now invite back our CFO for business outlook for Q4 2022.
최근 통신 및 미디어 시장은 국내외적으로 급격히 변화하고 있습니다. 보다 젊어지고 스마트해진 고객들은 합리적인 소비를 중시하고, 기존의 통신 서비스보다는 디지털 기술과 차별화된 콘텐츠에 더 열광하여 플랫폼 사업자와 OTT의 영향력이 시장에서 점점 더 높아지고 있는 상황입니다.
Recently, we are seeing dramatic changes both home and abroad in telecom and the media market. Customers who are now younger and smarter values rational consumption and are excited about differentiated and original content and digital technology more than the incumbent telco services. Thus, we are seeing ever-growing market influence of platform providers and OTTs.
이러한 고민에서 시작된 것이 앞서 말씀드린 LG Uplus의 디지털 혁신 기업, 플랫폼 사업자로서의 전환입니다. 장기적으로 기존 통신 사업의 내실을 공고히 하면서도 디지털 기술 기반으로 고객의 데이터를 철저히 분석해서 보다 큰 고객 경험을 제공하고, 지속적인 성장을 만들 수 있는 사업 구조를 만들어 가고자 합니다.
This was the starting point of our thought process, which led us to the transformation of LG Uplus as innovative digital company and a platform provider. Over the long term horizon, while we solidify the fundamentals of the telco business, we wish to put in place a business structure enabling sustainable growth, offering bigger experiences to our customers, supported by digital technology and rigorous customer data analytics.
B2C와 B2B 모든 영역에서 신사업 매출 성장을 강화하고 수익성을 확보해서 2027년까지 비통신 매출 비중을 현재 두 배 수준인 40%까지 확대하고, 기업 가치는 12조 원까지 성장시킬 계획을 가지고 있습니다.
By bolstering revenue growth and securing profitability from new businesses in both B2C and B2B, we plan to double the non-telco revenue share to 40% by 2027 and grow our corporate value to KRW 12 trillion.
이러한 LG Uplus의 미래 성장 전략과 함께 올해 남은 기간에도 수익성 개선을 위한 노력을 지속하고자 합니다. 차별화된 서비스 경쟁력과 효율적인 비용 집행을 통한 수익성 중심의 경영으로 경영 목표 초과 달성과 이익 개선의 목표에는 변함이 없는 상황입니다.
In step with LG Uplus's strategy for future growth, for the remainder of the year, we plan to focus on improving our businesses' profitability through differentiated service competitiveness and efficient spending. With unwavering focus on our bottom line, our objective remains unchanged as we strive for outperformance and profit enhancement.
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We will continue to exert our utmost efforts during Q4 to drive business results as well as enhance corporate and shareholders value. Thank you. This concludes the Q3 2022 earnings report. We are now open for your questions.
Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you've pressed the number star one. For cancellation, please press star two, that is star and two on your phone. The first question will be provided by Hong-sik Kim from Hana Securities. Please go ahead with your question.
Yeah.
Thank you. I would like to ask you several questions. First relates to your Q3 results. Overall, the earnings for Q3 was quite favorable, but still that does not eliminate the concerns that the investors have with regards to the earnings performance for LG Uplus. Because previous year, you failed to meet your operating profit target of KRW 1 trillion, and we still do have some concerns regarding your Q4 figures. What do you think is the possibility for the company to be able to hit that KRW 1 trillion operating profit target? Second question relates to your CapEx. Where are you mostly spending your CapEx expenditure? I would like to understand where you're focusing your investments on for your future.
Thirdly, we've seen a lot of press articles regarding the recent credit crunch that we are seeing in the market, and it's becoming quite difficult for companies to finance themselves. In terms of LG Uplus CapEx needs, are you comfortable on that front?
Yes, I understand the previous year, the fact that we underperformed that KRW 1 trillion mark had created quite a bit of a disappointment to certain people. Considering this year, I do believe that we do have ample potential to meet that target. Yes. I understand that the reason for such concern is because on a cumulative basis, as of Q3, the revenue growth rate had been less than what was expected from the market.
If we look into the fourth quarter, I believe that, because most of the revenue is quite concentrated from our B2B business, we are going to be able to see some impact come through from there. Also for our consumer business, we are seeing a sustained uptrend in the number of subscribers, especially the high-value customers. Come Q4 of this year, we believe that we will be able to bring about the, you know, revenue growth of around 4% year-on-year. Regarding the operating profit for the previous year, Q4 of previous year, we were incurring some one-off expenses, so that we could motivate our employees and also so that we can prepare for this year's business.
For this year, there is not going to be any such non-recurring or one-off expenditure items, at the end of this year, meaning Q4. If you were to look at the progress to date, I think that, you know, we do have ample signals that help us, make more positive projections regarding the operating profit figure at the end of the year. I can tell you that we are committed, as it is what we want as a company and what the market expects, that we will definitely meet that KRW 1 trillion operating profit mark. Regarding your question on CapEx, I think that your concern arises from the fact that cumulative Q3 CapEx is above, the level of the previous year on a year-over-year basis. That is because of the quarterly impact.
For the Q4 of this year, we are expecting a lower level of CapEx expenditure. If you were to look at the CapEx figure on a per annum basis, it will most likely be flat Y-O-Y. Regarding next year's CapEx, we're currently in the process of drafting our business plan, so we would have to wait and see regarding the details. What I can tell you is that the focus of our capital expenditure in upcoming periods will be, number one, making investments into improving the qualities for our customers and also running quality related tests. We plan to be very precise in running these activities in terms of testing and enhancement, so that we could always ensure that we provide the elevated level of quality to our user base.
Second point, as I've mentioned during the presentation, we are now living in an age where providing a good customer experience, which is underpinned by data, is going to be the key for companies like us. Hence, we will be making investment into laying a solid basis and foundation for us to be able to further grow our businesses underpinned by data.
Turbulences and the potential impact that this could have on companies like us. What I can tell you is that LG Uplus is in a business area where our business related beta coefficient is does not fluctuate too much, meaning those that actually provide the credit into the market basically consider companies like us in these types of sectors as key priority companies for them to actually extend those credit.
Regarding debt, especially on the corporate bond side, everything is well arranged for, in terms of the funding need of the company. Regarding any debt that we would need for operational purposes, we have everything well in control and everything is well arranged. There was a case regarding ABSs, but we've gotten a confirmed answer from one of the anchor investors who actually have a demand, a need for ABS instruments. We believe that regarding the financing and the funding needs, the company does not, at this point, face any particular problems.
최근에 금융시장 내에서의 스트레스는 오늘 내일로 끝날 것 같지는 않고 조금 지속된다는 가정을 하더라도, 우리 회사 입장에서는 그동안 금융 부분에서 차입금의 만기 구조를 분산시켜 왔고, 그런 결과 올해의 차입금과 관련된 만기 금액 대비 내년은 그 반 정도로 줄게 돼 있습니다.
We expect the current stress level that we are seeing in the financial market will probably not just be, you know, even if it doesn't go away in a short term, even if we assume that this situation is going to be prolonged. In terms of the financing, because we have already diversified the maturity structure, if you were to compare the amount of obligations that's going to come due next year, it's going to be about half the size of what we have seen this year.
결론적으로 말씀드리면, 기본적으로 베타 계수가 낮은 사업 영역에 속한 저희 회사는 금융시장 내에서의 신용 공여 선호도가 높다. 그리고 내년도 차입금 만기와 관련된 구조는 상당히 양호하게 지금 구성되어 있다라는 가정하에서 판단해 주시면 좋겠습니다. 그 걱정 안 하셔도 됩니다.
All in all, as we are a company that is in an industry sector where our business actually has a relatively lower beta coefficient, we are more likely to receive credit from the credit providers in the financial market. The second element is that our debt maturity profile is quite favorable for the company. I can assure you that you need not be concerned.
다음 질문 대기자분 질문해 주시기 바랍니다.
We will take the next question, please.
다음으로 질문해 주실 분은 DB금융투자의 신은정 님입니다.
The following question will be presented by Shin Eun-jung from DB Financial Investment. Please go ahead with your question.
저는 두 가지 질문드리도록 하겠습니다. 첫 번째 질문은 최근에 Running Man이나 나는 가수다 PD님들 영입했다는 기사를 봤는데요. 이와 관련돼서 앞으로 저희 콘텐츠 투자나 전략 방향이랑 그리고 수익화 모델 어떻게 가져가실지 설명 부탁드리고요. 두 번째 질문은 지난 실적 발표도 그렇고 이번 실적 발표 때도 아이돌플러스의 글로벌 서비스 확장에 대해서 말씀을 주셨습니다. 관련해서 진행 현황을 공유해 주시면 감사하겠습니다. 이상입니다.
Thank you. I would like to ask you two questions. First, I understand that you recently hired a producer who previously produced episodes and content like Running Man and I Am a Singer. I would like to understand what your content-related investments and content strategies are, and what your monetization plans are like. My second question is, with regards to idolplus, I understand that you're taking that for global expansion. Can you provide us with an update on that?
네, 안녕하십니까. CCO 이덕재입니다.
Hello. I am the CCO in charge of content. I am Lee Deok-jae.
콘텐츠 사업에서 가장 중요한 역량은 좋은 콘텐츠를 기획하고 제작하는 사람에게 있다고 하겠습니다.
When it comes to the content business, the key capabilities and competencies lie with the people. The people's capability to actually plan and produce good content.
네, 그런 측면에서 올해 저희 CCO에 제작 센터를 구축했고요. 신정수 센터장과 이명택 팀장, 그리고 양자연 팀장 등 좋은 사람을 모으는 데 가장 많은 공을 들였습니다.
Under our CCO, we have actually set up a production center. It's headed by Shin Jeong-soo, and also we have hired people, and we have put in place the team leaders, such as Lee Myeong-taek and Yang Jaeyun. We have put in a lot of efforts to really, you know, come up with the most optimal organization.
단순히 성공의 경험뿐만 아니라, 저희와 뜻이 맞고 또 새로운 도전과 변화를 추구하는 그런 DNA의 전문가들로 영입을 해오고 있습니다.
The people that we are onboarding are not just people who previously had successes, but their vision and their spirit of challenge is well embedded in their DNA, and it is well aligned with what we as a company are seeking.
네, 이러한 리더들과 함께 Uplus의 새로운 콘텐츠 창작의 문화를 만들고, 고객으로부터 인정을 받아서 향후 Uplus의 기업의 가치를 한 단계 더 높이는 데 집중하고자 합니다.
Together with these leaders, we wish to create a culture of content creation within LG Uplus, and we want to be able to be well-recognized for that, by our users, through which we would eventually want to further enhance the corporate value.
콘텐츠 사업 방향에 관해서 말씀드리자면, 얼마 전에 저희가 외부에도 공개해 드린 대로 저희 CCO 산하에 스튜디오 브랜드인 Studio X+U를 조직으로 편재했습니다.
Just to provide a little more elaboration on the overall content business direction, and we have released this information to the market as well. Within CCO, we've set up a studio brand called Studio X+U.
네, 이 브랜드의 네임 안에는 저희가 기획 제작하는 콘텐츠로 고객의 즐거움을 배가하고 또 새로운 경험을 더해드리겠다라는 의미를 담고 있습니다.
The meaning of this brand name basically embodies and reflects our commitment to be able to produce and create great content, thereby providing enjoyment and good experience to the users. Through this, through the use of this studio, we wish to provide fun, empathetic, innovative and scalable content and be able to not just produce them or distribute them and end there, but try to connect that with other value-added services, especially even going into the overseas and global IP business, through which we wish to further enhance the ROI of our content business. Basically, our key target is going to be the millennials. Unlike what the legacy media provide, we would be innovating different types of content, and we will be providing those such contents to our target base.
These contents will not just be for the use of our internal platform, but we would also seek synergies with other LG Group affiliates. Basically, under this strategic approach, it is essential for us to collaborate with companies whose strategies align with our views, and we are open to partnering up with any such company. With regards to more specifics about the strategies, we will come back to you once we have them well lined up. Responding to your second question about idolplus. Currently this idolplus supports multiple languages including English, Japanese, Mandarin, Thai and Indonesian. Also the portion or the share of overseas users account for 60% of the total user base.
One of the key indicators that I could share with you is that, although temporarily mid-October, we hit 5 million MAU figure. The most important element about idol platform is providing a platform for marketing for the artists and their fandom and the management companies that actually manage and plan and provide support to these artists. Because of that, we would like to develop and grow idolplus into a fandom-based community platform. If we were to think about the future direction, we are looking at developing business models, where we could run advertisement or provide other overseas services supported by this platform. Thank you. We will take the final question due to the time constraint.
The last question will be presented by Sean Lee from Citigroup. Please go ahead with your question.
Well, thank you for giving me the opportunity to ask the final question. I just have one question on your new business. If you look at your earnings presentation, you talk about the future growth strategies around these four platforms. Since you announced this plan, we'd like to understand, you know, what's been going on. Can you provide us with an update? When can we expect more specific business model, and when can we see revenue, flow through, and what are your plans for, you know, under these initiatives?
Yes. CSO Kwon Yong-hyun.
Hello, I am CSO. I am Kwon Yong-Hyun. To update you, since the plan was announced in September, we're in the process of setting up organizations that will be powering such long-term efforts in our process and in our efforts to develop business models. As mentioned during the presentation, there are these new business endeavors that we have been putting our effort behind for some time, which includes content as well.
Also there are new business areas under the four major platforms. In order to eventually make these new businesses independent, at this point, what we are doing is we are hiring the relevant experts, POs, and developers so that in the process of making this organization more precise. Under these four platforms, there are different types of businesses.
Basically, some businesses have been ongoing for some time, so the progress is quite advanced. While some other businesses, we have to start fresh and start from new. One of the example is under the nurture and care platform, Uplus Kids World already was in operation. There is a business model that we can adapt and make more upgrades under the Kids OTT initiative. Based on our existing experiences, we can diversify that and think of many other new types of business models. Under the lifestyle platform, for under subscription, for instance, Udok service was a service that was already in place, so we will be continuing on with that. At the same time, we'll try to explore new business models relating to subscription.
You also asked about when we will be able to see some tangible revenue results. It will differ depending on which platform you're talking about. For instance, the play platform like the idolplus and other content businesses, of course, I would have to come back to you with more specific plans as we develop them, but we will be able to see revenue being generated starting next year. For subscription and routine services, we're looking at more towards second half of next year.
On these four platforms, once we develop more detailed plans, we will come back to you and share with you as to how, what their impact will be in terms of subscriber numbers and also its impact on our user base. This ends the Q3 2022 earnings presentation of LG Uplus.
If you have more questions, please feel free to contact us at the IR team. Once again, thank you very much for joining us.