LG Uplus reported an operating profit of 297.6 billion won for the third quarter of this year, marking an 84% increase compared to the same period last year. This significant rise was attributed to a one-time labor cost base effect from the previous year and improvements in business efficiency. Revenue from the Artificial Intelligence Data Center (AIDC) also saw substantial growth, driving the company's overall performance.
On November 4, LG Uplus announced that its consolidated operating revenue reached 3.98 trillion won, with service revenue at 3.1 trillion won and operating profit at 297.6 billion won for the third quarter.
Both operating revenue and service revenue experienced slight declines of 0.7% and 0.5%, respectively, compared to the previous year, primarily due to decreased sales from subsidiaries. However, on a standalone basis, service revenue increased by 0.7% to 2.91 trillion won, while cumulative consolidated service revenue for the third quarter rose by 1.6% to 9.22 trillion won compared to the same period last year.
Operating profit surged by 84.1% year-over-year, driven by the one-time labor cost base effect and enhanced profitability from business efficiency. The operating profit margin also improved by 4.4 percentage points to 9.6%.
On a standalone basis, capital expenditures (CAPEX) increased by 30.1% year-over-year to 569.8 billion won, reflecting expanded investments in the AIDC. Cumulatively for the third quarter, this represented a 17.2% increase. Marketing expenses rose by 5.6% year-over-year to 612.9 billion won due to decreased device margins.
In detail, the mobile segment reported revenue of 1.69 trillion won, a 0.9% decline compared to the previous year. However, service revenue excluding access fees grew by 0.4% to 1.62 trillion won, supported by overall growth in mobile subscriptions.
The total number of mobile subscriptions, combining mobile network operators (MNO) and mobile virtual network operators (MVNO), increased by 6.2% year-over-year to approximately 32.14 million. Of these, MNO subscriptions rose by 8.7% to 23.05 million, while MVNO subscriptions increased by 0.4% to around 9.09 million.
The number of 5G handset subscriptions reached 9.61 million, reflecting a 5% increase compared to the previous year. The share of 5G subscriptions within the total MNO handset subscriptions rose to 85.5%.
The smart home segment, which includes internet and IPTV services, recorded revenue of 665.5 billion won, a 2.9% increase year-over-year, driven by growth in gigabit internet subscribers and average revenue per user (ARPU).
Internet revenue grew by 5.4% year-over-year to 328.3 billion won, bolstering the smart home business. The number of high-speed internet subscriptions increased by 3.1% year-over-year to 5.71 million, with a net growth rate of 59.1%. IPTV revenue grew by 0.6% to 337.2 billion won.
Corporate infrastructure revenue rose by 10.4% year-over-year to 472.2 billion won, which includes segments such as AIDC, solutions, and corporate lines.
AIDC revenue, driven by growth in colocation and design, build, and operate (DBO) services, increased by 27.7% year-over-year to 131.7 billion won, also up 6.1% compared to the second quarter of this year.
Solutions and corporate lines also showed steady revenue growth. Solutions revenue increased by 3.4% year-over-year to 124.4 billion won, supported by expanded AI contact center (CC) sales, while corporate line revenue grew by 5.7% to 216.1 billion won due to increased build-type sales.
LG Uplus is constructing a 200-megawatt (MW) AIDC in Paju, with plans to sequentially operate a total of four buildings by 2028. The first building, already secured with customers, is being constructed at a scale of 50 MW and is expected to begin operations in June 2027.
The AICC business is expanding its AI solutions, developed based on customer center operations, primarily in the financial sector.
Yeo Myung-hee, Chief Financial Officer of LG Uplus, stated, "Through stable service revenue growth and business efficiency improvements up to the third quarter, we have continued to enhance profitability. We will strengthen the structural competitiveness of our core telecommunications business while translating opportunities in AI services into tangible results to continuously enhance corporate value."
* This article has been translated by AI.
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