LG Uplus reported that its third-quarter operating profit grew by 84% this year, driven by an increase in mobile subscribers and improved performance in its AI (artificial intelligence) business division. LG Uplus explained the potential for earnings growth regarding its AI business outlook, stating, "Demand has been confirmed for all four buildings of the AI DC (data center) currently being built in Paju."
LG Uplus said Wednesday that it recorded consolidated operating revenue of 398.13 billion won and an operating profit of 297.6 billion won in the third quarter this year. Compared with the same period last year, revenue decreased by 0.7%, while operating profit increased by 84.1%. 'Service revenue,' which excludes device revenue from operating revenue, was 310.21 billion won, a 0.5% decrease year-on-year. Net income turned to a profit of 183.1 billion won.
By division, mobile segment revenue was 168.67 billion won, down 0.9% from the same period last year. Service revenue, excluding connection revenue, was 162.32 billion won, up 0.4% year-on-year, thanks to the growth trend in total 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 (fifth-generation) lines reached approximately 9.611 million, up 5% year-on-year, accounting for 85.5% of mobile subscriber lines.
Revenue for the Smart Home segment, comprising internet and IPTV (internet TV) services, was 665.5 billion won, a 2.9% increase year-on-year, driven by growth in gigabit internet subscribers and ARPU (average revenue per user). Internet revenue rose 5.4% over the past year to 328.3 billion won, while IPTV revenue increased by 0.6% to 337.2 billion won.
Revenue for the Enterprise Infrastructure segment, which includes AI DCs and solutions as well as enterprise lines that have emerged as new growth drivers, was 472.2 billion won, up 10.4% from the same period last year.
AI DC revenue recorded 131.7 billion won, a 27.7% increase from the third quarter last year, driving earnings growth. Solution revenue also rose by 3.4% to 124.4 billion won due to expanded sales of AICC (AI contact centers), while enterprise line revenue grew by 5.7% to 216.1 billion won on increased project-based sales.
Ahn Hyeong-gyun, head of the Enterprise AI Business Group at LG Uplus, said during a third-quarter earnings conference call held in the afternoon that day, "We are building a 200-megawatt-class AI data center, the largest in the metropolitan area, in Paju."
He added, "We plan to sequentially open a total of four buildings by 2028. We have equipped liquid-cooling environments capable of accommodating the latest GPU servers, such as Vera Rubin, and plan to begin operations after completion in June 2027."
He continued, "With customer demand confirmed not only for Buildings 2 and 3 but also for Building 4, we are fully accelerating the design and construction of subsequent facilities."
Yeo Myung-hee, CFO of LG Uplus, said, "Through stable service revenue growth and business structure efficiency up to the third quarter, we have continued solid profitability improvements. We will strengthen the structural competitiveness of our core telecommunications business while translating AI service business opportunities into tangible results, striving for continuous corporate valuation enhancement."
Yeo said, "As AI adoption accelerates across domestic industries, AI investment is also progressing faster than originally planned." He revealed the direction for future CAPEX (capital expenditure) increases by adding, "In particular, AIDCs, which account for a high proportion of investment, are moving up their expansion schedules based on solid customer demand."
in TECH
