LG Uplus recorded an operating profit of 297.6 billion won in the third quarter of this year, marking an 84% increase compared to the same period last year. The improvement in profitability was driven by a growing trend in mobile line subscribers and expansion in the AI DC (Artificial Intelligence Data Center) business.
LG Uplus said Wednesday that it recorded consolidated operating revenue of 3 trillion 981.3 billion won and an operating profit of 297.6 billion won in the third quarter of this year.
Compared to the third quarter last year, revenue decreased by 0.7%, while operating profit increased by 84.1%. Service revenue, which excludes device revenue from operating revenue, was 3 trillion 102.1 billion won, a 0.5% decrease from the same period last year. Net income turned to a profit of 183.1 billion won.
By segment, mobile division revenue decreased by 0.9% year-on-year to 1 trillion 686.7 billion won. Service revenue, excluding connection revenue, increased by 0.4% year-on-year to 1 trillion 623.2 billion won, driven by the overall growth in mobile subscriber lines.
Mobile subscriber lines, including MVNOs (Mobile Virtual Network Operators), numbered approximately 32.143 million, a 6.2% increase from the third quarter last year. MNO (Mobile Network Operator) lines and MVNO lines increased by 8.7% and 0.4%, respectively. 5G lines reached approximately 9.611 million, a 5% increase from the same period last year, accounting for 85.5% of mobile subscriber lines.
Smart Home division revenue, comprising internet and IPTV (Internet Protocol Television) businesses, increased by 2.9% year-on-year to 665.5 billion won, driven by growth in gigabit internet subscribers and ARPU (Average Revenue Per User). Internet revenue rose by 5.4% over the past year to 328.3 billion won, while IPTV revenue increased by 0.6% to 337.2 billion won.
Enterprise Infrastructure division revenue, which includes AI DCs, solutions, and enterprise lines emerging as new growth drivers, increased by 10.4% year-on-year to 472.2 billion won. AI DC revenue recorded 131.7 billion won, a 27.7% increase from the third quarter last year, leading performance growth.
Solution revenue also rose by 3.4% to 124.4 billion won due to expanded sales of AICC (Artificial Intelligence Contact Centers), while enterprise line revenue grew by 5.7% to 216.1 billion won on increased project-based sales.
Lee Myung-hee, CFO of LG Uplus, said, "We have continued solid profitability improvements based on stable service revenue growth and business structure efficiency through the third quarter. While strengthening the structural competitiveness of our core telecommunications business, we will strive to translate AI service business opportunities into tangible results for continuous corporate valuation enhancement."
in TECH
