LG Uplus announced today (9th) that its operating profit for the first quarter of this year was 220.9 billion won, a decrease of 15.1% from the same period last year. Sales increased by 1% compared to the first quarter of last year, reaching 3.577 trillion won. Net profit decreased by 15.9% to 130.4 billion won.
Service sales excluding terminal sales increased by 2.5% compared to the first quarter of last year, mainly driven by growth in the B2B infrastructure sector. The growth was supported by the expansion of solution business, including AI Contact Center (AICC) and Smart Mobility, as well as double-digit revenue growth in IDC (Internet Data Center) business.
LG Uplus attributed the decrease in operating profit to cost reflecting new integrated computer network construction and increased marketing costs due to the increase in mobile phone sales volume. The company recorded sales of 405 billion won in the enterprise infrastructure sector, which includes solutions, IDC, and corporate circuit business, a 9.9% increase from the same period last year.
Utilizing its accumulated AI capabilities, LG Uplus plans to accelerate the application of AI-centric digital transformation (AX) in its B2B businesses such as AICC, SOHO, and IDC starting this year to drive AI-based B2B business performance and revenue growth.
The most significantly growing sector was the solution business, including AICC, SOHO, Smart Mobility, which saw a 19.8% increase in sales in the first quarter to 122 billion won compared to the same period last year. LG Uplus reported that it has expanded customer choice by operating AICC solutions tailored to corporate customers based on advanced AI technology.
In the mobile sector, total subscription lines recorded the highest growth rate ever after the introduction of 5G. Mobile business revenues increased by 1.3% year-on-year to 15.81 trillion won. Wireless service revenue excluding access revenue grew by 1.9% to 15.71 trillion won.
The total number of wireless subscription lines, including MNO and MVNO, increased by 27.8% year-on-year to 26.268 million, achieving a growth rate in the 20% range for three consecutive quarters. The net increase in total subscription lines was 1.171 million, a 77.7% increase compared to the first quarter of last year.
Smart home business, including IPTV and high-speed internet, continued to grow due to the increase in high-value subscription lines. The sector recorded sales of 611.7 billion won in the first quarter, up 2.9% from the same period last year.
