LG Uplus achieved an operating profit of 334.5 billion won in the second quarter of this year, marking its highest quarterly performance to date. The company plans to accelerate the expansion of its artificial intelligence data center (AIDC) business based on stable profitability.
On August 6, LG Uplus announced that its consolidated revenue for the second quarter reached 3.6949 trillion won, with service revenue at 3.0765 trillion won and operating profit at 334.5 billion won.
Revenue decreased by 3.9% compared to the same period last year. However, service revenue, excluding device sales, increased by 2%. Operating profit rose by 13.1% year-on-year, setting a record for the highest quarterly figure. Excluding one-time factors such as facility usage fees, the operating profit growth rate was approximately 5%.
Net profit for the period was 217.7 billion won, a 0.3% increase from the previous year.
Breaking it down, total revenue in the mobile sector rose by 0.9% year-on-year to 1.6602 trillion won, driven by an increase in net subscriber additions and the proportion of 5G handset subscriptions. Mobile service revenue, excluding connection fees, was 1.5959 trillion won, up 1.2% from the same period last year.
The total number of mobile subscriptions reached approximately 31.467 million, a 5.2% increase from the previous year. In the second quarter, there was a net addition of over 536,000 subscriptions. MNO subscriptions totaled about 22.442 million, while MVNO subscriptions reached approximately 9.025 million, increasing by 7.2% and 0.4%, respectively, compared to the previous year.
The number of 5G handset subscribers grew by 6.9% year-on-year to 9.548 million, resulting in a 5G penetration rate of 84.9% among all handset subscribers.
Revenue from the smart home sector increased by 4.3% year-on-year to 663.8 billion won, driven by growth in IPTV and high-speed internet subscriptions.
Internet revenue grew by 7.6% year-on-year to 325.1 billion won, with a net addition of 38,000 internet subscribers in the second quarter, bringing the total to approximately 5.677 million, a 3.6% increase from the previous year. IPTV revenue also rose by 2.1% year-on-year to 337.7 billion won, with IPTV subscribers reaching 5.776 million, up 1.3% from the previous year.
Revenue from the solutions sector, which includes AICC and smart mobility businesses, increased by 6.8% year-on-year to 134.6 billion won, driven by higher messaging revenue. Corporate line revenue rose by 0.2% to 205.7 billion won during the same period.
Corporate infrastructure revenue reached 464.4 billion won, an 8.6% increase from the previous year. Notably, the AIDC business achieved 124.1 billion won, a 28.9% increase year-on-year, driven by growth in colocation revenue, contributing to the overall growth of the corporate infrastructure sector.
LG Uplus plans to expand its AIDC business based on profitability. CFO Yeom Young-hee stated during a conference call, "We expect facility investments to increase compared to last year due to the expansion of AIDC investments. However, we will execute investments within the EBITDA range to secure stable free cash flow (FCF)."
She added, "We plan to enhance capital efficiency and reduce cash flow burdens by combining self-investment with leasing and DBO. We aim to maintain our financial goals by enhancing corporate value without external funding."
Jung Young-hoon, head of the corporate AI business, noted, "The current situation shows that demand exceeds supply, leading to rising floor and electricity costs. The Paju AIDC project is expected to improve profitability compared to existing centers."
* This article has been translated by AI.
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