KB News Desk
LG Uplus posted a record quarterly operating profit in the second quarter as rapid growth in its artificial intelligence data center business and cost-cutting efforts offset a decline in overall revenue, the company said Thursday.
Operating profit rose 13.1 percent on-year to 344.5 billion won ($243.4 million), while revenue fell 3.9 percent to 3.69 trillion won. Service revenue, which excludes handset sales, increased 2 percent to 3.08 trillion won, and net profit edged up 0.3 percent to 217.7 billion won.
The telecom carrier said the earnings improvement was driven by growth in enterprise infrastructure, particularly AI data centers, as well as tighter cost controls and a continued focus on profitability.
Enterprise infrastructure revenue climbed 8.6 percent to 464.4 billion won. Revenue from AI data centers surged 28.9 percent to 124.1 billion won as demand for colocation services grew.
LG Uplus is building a 200-megawatt AI data center in Paju, Gyeonggi Province, which it says will be the largest in the Seoul metropolitan area. The first of its server buildings is scheduled to open in the first half of next year.
The company also plans to secure additional power capacity through design-build-operate projects and establish data center hubs outside the capital region as demand for AI infrastructure continues to rise.
Mobile revenue gained 0.9 percent to 1.66 trillion won. LG Uplus had 31.47 million mobile lines at the end of June, up 5.2 percent from a year earlier, after adding a net 536,000 during the quarter.
Subscriptions to its mobile network operator service rose 7.2 percent to 22.44 million, while mobile virtual network operator subscriptions increased 0.4 percent to 9.03 million.
LG Uplus plans to simplify its mobile offerings with integrated rate plans and bundled products and add new functions to ixi-O, its AI-powered call assistant app.
Smart home revenue rose 4.3 percent to 663.8 billion won on growth in IPTV and broadband subscriptions. Broadband revenue increased 7.6 percent to 325.1 billion won.
The company is also expanding its AI contact center business, which currently serves mainly financial companies. It plans to introduce large language model-based solutions in the second half alongside consultation support and automated quality-assurance services.
“We will turn the changes brought by the spread of AI into new growth opportunities and strengthen our foundation for growth by improving efficiency and profitability through companywide AI transformation,” said Chief Financial Officer and Chief Risk Officer Yeo Myung-hee.
