"SKT Spillover Effect" Boosts LG Uplus: Operating Profit Up 20%, Nears 30 Million Subscriptions (Comprehensive)

LG Uplus Announces Q2 2025 Earnings Results
Revenue Up 10% to KRW 3.8 Trillion... Operating Profit Reaches KRW 304.5 Billion
5G Subscriptions Increase by 20%... Strong Performance in IDC Business

LG Uplus continued its trend of improved performance in the second quarter of this year, with operating profit rising by 20% compared to last year. This was driven by an influx of subscribers following the SK Telecom hacking incident in April, as well as growth in the data center business.

Hong Beomsik President of LG Uplus

On August 8, LG Uplus announced that its consolidated revenue for the second quarter of 2025 reached KRW 3.8444 trillion, and operating profit was KRW 304.5 billion, representing increases of 10% and 19.9%, respectively, compared to the same period last year. With this, LG Uplus achieved a performance turnaround for the second consecutive quarter, following the first quarter, and continued its improvement in results for two straight quarters.

Second-quarter revenue from the wireless business segment rose by 3.8% year-on-year to KRW 1.6542 trillion. The number of LG Uplus wireless subscriptions, including MVNOs, increased by 9.9% compared to the second quarter of last year, reaching approximately 29.917 million, putting the company on the verge of surpassing 30 million total subscriptions. In particular, the number of 5G subscriptions grew by 20.5% to 8.93 million, driving the growth of wireless business revenue.

The Smart Home segment, which includes high-speed internet and internet TV (IPTV) businesses, achieved revenue of KRW 636.6 billion, up 2.7% from the second quarter of last year.

In particular, high-speed internet revenue increased by 6.7% year-on-year to KRW 302.2 billion. The number of subscriptions also rose by 4% over the same period to 5.479 million. Notably, subscriptions to products with speeds of 500 Mbps or higher accounted for 81.3%, contributing significantly to improved results.

IPTV business revenue was KRW 330.5 billion, similar to KRW 334.9 billion in the second quarter of last year. The number of IPTV subscriptions increased by 3.3% year-on-year to 5.699 million.

Revenue from the enterprise infrastructure segment decreased by 0.3% year-on-year to KRW 427.7 billion, mainly due to the transfer of the electric vehicle charging business to its subsidiary, LG Uplus Voltup.

However, the internet data center (IDC) business achieved revenue growth of 5% year-on-year to KRW 96.3 billion, as occupancy rates improved with new client companies moving in.

In February, LG Uplus signed a consignment operation contract for the Casequare Data Center Gasan. Going forward, the company plans to strengthen its IDC business by comprehensively managing multiple data center facilities and tenant companies promoted by Koramco Asset Management.

Marketing expenses rose by 3.5% year-on-year to KRW 540.1 billion, due to increased device sales. Capital expenditures (CAPEX) were KRW 393.3 billion, down 29.4% compared to the second quarter of last year.

Yeom Myunghee, Chief Financial Officer and Chief Risk Officer (CFO/CRO) of LG Uplus, stated, "Through ongoing structural cost competitiveness improvement activities, we were able to achieve a profit turnaround for the second consecutive quarter." She added, "Despite market uncertainties such as the abolition of the handset subsidy law, we will continue to solidify our fundamental service competitiveness and further strengthen shareholder returns to enhance long-term corporate value."

This content was produced with the assistance of AI translation services.