AI-driven Efficiency and Subscriber Growth Boost Net Profit by 32%
LG Uplus’s operating profit for the second quarter saw a 20% increase.
LG Uplus announced on the 8th that its consolidated operating profit for the second quarter jumped 19.9% from the previous year to 304.5 billion KRW. Revenue rose by 10% during the same period to 3.8444 trillion KRW, and net profit increased by 31.9% to 217.1 billion KRW.
This strong performance is attributed to the efficient reallocation of resources, productivity improvements using artificial intelligence (AI), product differentiation, and increased revenue from subscriber growth. The wireless business in the second quarter achieved earnings of 1.6542 trillion KRW, a 3.8% increase from the same period last year, due to net subscriber growth and a higher percentage of 5G handset subscriptions. Excluding connection revenue, mobile service revenue rose by 4.3% to 1.5856 trillion KRW.
The total number of wireless subscriptions, combining mobile network operators (MNO) and mobile virtual network operators (MVNO), reached approximately 29.917 million, a 9.9% increase compared to the same period last year, nearing 30 million. Particularly, MVNO lines grew by 21.7% from the previous year to 8.987 million, marking growth above 20% for six consecutive quarters. The churn rate for mobile communications improved by 0.07 percentage points to 1.06% compared to the same period last year.
The Smart Home segment reported a 2.7% increase year-on-year in revenue to 636.6 billion KRW, driven by an increase in internet revenue. Specifically, revenues from high-speed internet and IPTV were 302.2 billion KRW and 330.5 billion KRW, respectively. Revenue in the enterprise infrastructure segment, which includes the internet data center (IDC), solutions, and corporate lines, decreased by 0.3% to 427.7 billion KRW due to transferring the EV charging business to its subsidiary, LG Uplus Bolt Up. IDC business revenue increased by 5% to 96.3 billion KRW, as occupancy rose with new customer move-ins.
Marketing expenses in the second quarter increased by 3.5% to 540.1 billion KRW due to a rise in handset sales. Capital expenditures (CAPEX) fell by 29.4% to 393.3 billion KRW. LG Uplus CFO Yeom Myung-hee stated, “We were able to record a profit turnaround for two consecutive quarters through activities to improve structural cost competitiveness,” adding, “Despite market uncertainties, we will firmly establish our fundamental service competitiveness and continue to strengthen shareholder returns to enhance long-term corporate value.”