LG Uplus posted its highest-ever quarterly operating profit in the second quarter of this year. Although total operating revenue fell due to lower handset sales, profitability improved as the company expanded its enterprise infrastructure business and grew its smart home segment.
According to LG Uplus on the 6th, consolidated second-quarter operating revenue came to 3.6949 trillion won, service revenue to 3.0765 trillion won, and operating profit to 344.5 billion won. Operating revenue fell 3.9% from a year earlier, but service revenue excluding handset sales rose 2%. Operating profit increased 13.1%, setting a new quarterly record. The operating margin relative to service revenue rose 1.1 percentage points from a year earlier to 11.2%. Net profit came to 217.7 billion won, up 0.3% from a year earlier. EBITDA rose 5.9% to 1.0348 trillion won, with an EBITDA margin of 33.6%.
The mobile business continued its steady growth, supported by subscriber gains. Mobile revenue in the second quarter reached 1.6602 trillion won, up 0.9% from a year earlier, while mobile service revenue rose 1.2% to 1.5959 trillion won. Total mobile lines reached about 31.467 million, up 5.2% from a year earlier, with a net increase of about 536,000 in the quarter alone. 5G subscribers totaled 9.548 million, accounting for 84.9% of all handset subscribers.
The smart home business also maintained its growth momentum. As internet and IPTV subscribers increased, smart home revenue rose 4.3% from a year earlier to 663.8 billion won. Revenue from both high-speed internet and IPTV increased.
The enterprise infrastructure business was driven by AI data centers. Revenue in the segment rose 8.6% from a year earlier to 464.4 billion won, while AIDC sales increased 28.9% to 124.1 billion won, helped by the expansion of the colocation business.
Yeo Myung-hee, LG Uplus chief financial officer and chief risk officer, said, "We will connect the changes brought by the spread of AI to new growth opportunities, and further strengthen our growth foundation by improving operational efficiency and profitability through companywide AX." She added, "We will do our best to enhance corporate value while maintaining a balance among investment for future growth, financial soundness, and shareholder returns."
Kim Se-hyung, fax123@sportschosun.com
This article has been translated by GripLabs Mingo AI.
