LG Uplus Reports Record-High Q2 Operating Profit of 344.5 Billion Won, Driven by AIDC Growth

AIDC revenue up 28.9%... Achievements in business expansion and cost efficiency
"Company-wide AX to strengthen growth by enhancing operational efficiency and profitability"

LG Uplus posted its highest-ever quarterly results in the second quarter of this year. Strong performance was driven by robust sales in both the Mobile and Smart Home divisions, as well as the enterprise infrastructure segment, led by the Artificial Intelligence Data Center (AIDC). LG Uplus has announced plans to enhance operational efficiency and profitability through a company-wide AI Transformation (AX).

LG Uplus Yongsan Building. Provided by LG Uplus

On August 6, LG Uplus announced that its consolidated revenue for the second quarter of this year reached KRW 3.6949 trillion, with operating profit at KRW 344.5 billion and net profit at KRW 217.7 billion. Service revenue, excluding device sales, amounted to KRW 3.0765 trillion. While revenue declined by 3.9% year-on-year, operating profit increased by 13.1%, marking a new record for quarterly operating profit.

In the second quarter, overall mobile revenue grew by 0.9% to KRW 1.6602 trillion, led by net additions of subscriptions and an increased proportion of 5G handset subscribers. Of this, mobile service revenue accounted for KRW 1.5959 trillion. The total number of mobile subscriptions reached approximately 31,467,000, up 5.2% year-on-year, with a net increase of about 536,000 subscriptions during the quarter. Mobile network operator (MNO) subscriptions grew by 7.2% year-on-year to around 22,442,000, while mobile virtual network operator (MVNO) subscriptions rose by 0.4% to 9,025,000. The number of 5G subscribers reached 9,548,000, with the 5G penetration rate expanding to 84.9% of total subscribers.

In May, for the first time in the telecommunications industry, 53 existing 5G and LTE plans were integrated into 18 unified plans, and the launch of the 'All-in-One' product—which allows customers to apply for mobile and internet subscriptions, as well as bundled wireless and fixed-line discounts, with a single application—contributed to the strong performance.

In the Smart Home division, revenue increased by 4.3% to KRW 663.8 billion, driven by growth in IPTV and high-speed internet subscribers. Internet sales rose by 7.6% to KRW 325.1 billion, fueled by an increase in giga internet subscribers. The number of internet subscribers rose by 3.6% to 5,677,000. IPTV subscriptions climbed to 5,776,000, with corresponding revenue increasing by 2.1% to KRW 337.7 billion.

Enterprise infrastructure segment revenue grew by 8.6% year-on-year to KRW 464.4 billion. During the same period, AIDC business revenue increased by 28.9% to KRW 124.1 billion, driving the growth in this segment. Solution business revenue, including AI Contact Center (AICC) and smart mobility, reached KRW 134.6 billion.

Currently, LG Uplus is constructing a 200 MW-class AIDC in Paju, the largest in the metropolitan area. The company plans to proactively respond to the growing demand for AI infrastructure, for example, through the opening of Computer Room 1 in the first half of next year. Additional power capacity is being secured through design, build, and operate (DBO) projects, while the strategy also includes establishing regional hubs to strengthen AIDC business competitiveness. In the first half of this year, the AICC business focused on build-type projects for the financial sector; in the second half, the company plans to expand its product lineup with solutions based on large language models (LLM), in addition to advisor and auto QA services.

Myunghee Yeo, Chief Financial Officer (CFO) of LG Uplus, stated, "We will leverage the changes brought by AI proliferation as growth opportunities and strengthen our growth foundation by enhancing operational efficiency and profitability through company-wide AX. Going forward, we will maintain a balance among investments for future growth, financial soundness, and shareholder returns."

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