LG Uplus: “Rapid Growth in Data Centers and Smart Homes through AI Advancement”

3rd Quarter Revenue of 3.8013 trillion KRW, a 6.2% growth year-on-year
Corporate infrastructure revenue grows by over 8% due to AI service advancements
Increase in smart home lines with AI set-top boxes and AI agents
“Accelerating growth in the mobile sector with the push from IXIO”

[Provided by LG Uplus. No resale or database use.], ‘[Financial News] LG Uplus recorded a 6.2% revenue growth in the third quarter. Thanks to the advancement of artificial intelligence (AI), significant growth was seen in the corporate infrastructure and smart home sectors, and mobile communication subscriptions exceeded 20 million for the first time. There was also an increase in MVNO subscriptions. ‘,

, ‘On the 8th, LG Uplus announced third-quarter revenue at 3.8013 trillion KRW and operating profit at 246 billion KRW. Revenue grew by 6.2% compared to the same period last year. The growth was primarily driven by the corporate infrastructure and smart home sectors. ‘,

, ‘In the corporate infrastructure sector, enhanced AI application services resulted in revenue growth rates of over 8% across Internet Data Centers (IDC), solutions, and corporate lines. In the smart home sector, the internet TV (IPTV) area saw growth in subscription lines through highly personalized services using on-device AI set-top boxes and AI agents. LG Uplus plans to accelerate growth in the mobile sector with the newly launched on-device AI calling agent ‘IXIO’. ‘,

, ‘Operating profit decreased by 3.2% from the same period last year, due to amortization costs of new integrated IT systems since the fourth quarter last year. Since last year, LG Uplus has developed and operated next-generation integrated IT systems that facilitate the application of future technologies such as AI and have enhanced security. ‘,

, ‘Marketing expenses for the third quarter increased by 0.5% year-on-year to 556.1 billion KRW, influenced by the launch of flagship smartphones. Capital investment decreased by 14.4% from the same period last year to 448.4 billion KRW, after finalizing base station construction following the allocation of an additional 20 MHz frequency. ‘,

, ‘In the third quarter, the mobile sector revenue increased by 2.1% year-on-year to 1.6204 trillion KRW, with mobile communication (MNO) subscriptions exceeding 20 million for the first time. Excluding access revenue, mobile service revenue amounted to 1.5465 trillion KRW, up 2.6% from the third quarter last year. ‘,

, ‘The total number of wireless subscription lines, combining MNO and MVNO, increased by 17.0% year-on-year to 27.873 million. Notably, MNO lines increased by 10% from 18.292 million in the third quarter last year to 20.12 million, marking the first time exceeding 20 million lines. The net increase in subscription lines was 651,000. ‘,

, ‘5G subscriptions increased by 17.6% year-on-year to 7.686 million lines, with the proportion of 5G lines among all subscription lines based on handsets increasing by 10.9 percentage points year-on-year to 70.2%. The MNO churn rate was 1.07%, similar to the third quarter of last year. ‘,

, ‘MVNO subscription lines continued to grow rapidly, recording a 40.3% increase year-on-year to 7.753 million in the third quarter. Excluding IoT and MVNO lines, ‘MNO ARPU’ per subscriber was maintained at a similar level to last year’s third quarter at 35,341 KRW, with a 0.7% increase from the previous quarter. ‘,

, ‘Corporate infrastructure sector revenue grew by 8.6% year-on-year to 428.5 billion KRW. LG Uplus explained that stable revenue growth from key AI application services such as AI contact centers (AICC) and small office/home office (SOHO) AX solutions drove the growth of the corporate infrastructure sector. ‘,

, ‘Third-quarter IDC business revenue increased by 8.8% year-on-year to 90 billion KRW. The corporate line business recorded an 8.0% increase to 209.1 billion KRW in revenue. ‘,

, ‘The smart home sector, consisting of IPTV and high-speed internet businesses, recorded a 5.7% increase in sales from the same quarter last year to 650.9 billion KRW, driven by continued growth in subscription lines. This year’s third-quarter IPTV subscription lines increased by 2.2% from the same quarter last year to 5.554 million lines. Revenue was similar to last year at 335.7 billion KRW. High-speed internet subscription lines increased by 3.9% year-on-year to 5.313 million, with revenue increasing by 6.7% to 287.2 billion KRW.\n’]