LG Uplus reports higher profit despite quarterly revenue decline

LG Uplus, a telecom operator expanding its AI and data infrastructure, said its second-quarter operating profit rose 13.1 percent from a year earlier to 344 billion won ($242 million), helped by corporate-infrastructure growth, cost efficiencies and ROI-focused profitability measures.

Revenue declined 3.9 percent to 3.69 trillion won ($2.59 billion), while net income edged up 0.3 percent to 218 billion won ($153 million).

Service revenue excluding device sales increased 2 percent to 3.08 trillion won ($2.16 billion). Mobile revenue rose 0.9 percent to 1.66 trillion won ($1.17 billion), supported by net subscription additions and a larger share of 5G handset subscribers. Total mobile subscription lines increased 5.2 percent to about 31.467 million, with about 536,000 net additions during the quarter. The company counted 9.548 million 5G handset subscribers, with a penetration rate of 84.9 percent.

Smart-home revenue grew 4.3 percent to 664 billion won ($466 million), as IPTV and high-speed internet subscriptions increased. Corporate-infrastructure revenue rose 8.6 percent to 464 billion won ($326 million), while AIDC revenue increased 28.9 percent to 124 billion won ($87.1 million), driven by growth in collocation sales. LG Uplus is pursuing a new AIDC build in Paju and said it would combine a DBO approach with a strategy to develop regional hubs in its AIDC business.