LG Uplus is poised to return to the "1 trillion won operating profit club" for the first time in four years. This is driven by a steady increase in mobile subscriber lines and rapid revenue generation from new growth areas such as artificial intelligence data centers (AI DCs). LG Uplus plans to focus on enhancing shareholder value based on strong performance achieved through structural improvements this year.
According to LG Uplus on the 11th, after first joining the 1st trillion won club with an operating profit of 1.0813 trillion won in 2022, achieving 1 trillion won in operating profit this year is highly likely, marking a four-year gap. LG Uplus's cumulative operating profit for the first three quarters of this year reached 914.4 billion won, already surpassing last year's annual operating profit of 892.1 billion won.
The securities industry also predicts LG Uplus's return to the "1 trillion won club." Daishin Securities forecasts LG Uplus's annual operating profit for this year at 1.164 trillion won. Hana Securities and Shinyoung Securities projected 1.15 trillion won and 1.116 trillion won, respectively.
Behind LG Uplus's improved performance are the results of its new business segment, AI DCs, and the stable growth of its core telecommunications business. The company's AI DC revenue in the third quarter of this year grew by 27.7% year-on-year, driving a 10.4% increase in enterprise infrastructure segment sales. Mobile service revenue also rose by 0.4% year-on-year, based on an increase in subscriber lines. Sales in the Smart Home segment, comprising internet and IPTV (Internet TV) services, showed growth of approximately 3%, driven by increases in gigabit internet subscribers and ARPU (Average Revenue Per User).
The company evaluated this return to the "1 trillion won operating profit club" as an "improvement in both quantity and quality." When LG Uplus first reached 1 trillion won in operating profit in 2022, it was merely a "touch" level, quickly falling below the 1st trillion won mark due to factors such as the maturation of the domestic telecommunications market and intensified subscriber competition. In contrast, this year's achievement reflects stable growth in existing businesses combined with performance from new ventures.
LG Uplus stated, "A new growth driver, AI DCs, has begun to contribute significantly to our results, while the mobile, Smart Home, and enterprise infrastructure businesses have grown simultaneously, building a more stable profit structure than in the past." The company added, "While the previous 1 trillion won was a result of growth in the mobile communications market, this year's 1 trillion won is significant as it reflects the outcomes of diversifying our business portfolio and focusing on profitability-driven management."
Along with this improved profitability, LG Uplus plans to continue its "value-up program" for shareholders. Previously, LG Uplus announced its corporate valuation enhancement plan, the "Value-up Plan," in 2024, setting medium- to long-term targets such as a return on equity (ROE) of 8% to 10% and a maximum shareholder return rate of 60%.
Following this, after burning off approximately 100 billion won worth of treasury shares last year, LG Uplus fully burned off 5.4 million treasury shares worth 80 billion won in May this year. In July, the company also announced plans to purchase an additional 6.15 million common shares worth 90 billion won and subsequently burn them all off. Dividends are also increasing. From 2022 to 2025, LG Uplus's interim dividend was 250 won per share, and the year-end dividend was 400 to 410 won per share, resulting in an annual dividend of 650 to 660 won per share. This year, the company raised the interim dividend by 8% from the previous year to 270 won per share.
in TECH
