LG Uplus, Revenue Increased but Operating Profit Decreased by 11.8%... 254 Billion KRW (Update)

Service Revenue of 2.9 Trillion in Q2... 1.6% Increase
Amortization Expense of Intangible Assets for Network Construction Up 27.8%
Growth in Corporate Infrastructure Sector Including Data Centers

LG Uplus recorded an operating profit of 254 billion KRW in the second quarter of this year, down 11.8% compared to the same period last year.

Hwang Hyun-sik, CEO of LG Uplus

LG Uplus announced on the 7th that its consolidated revenue for the second quarter of 2024 reached 3.4937 trillion KRW, a 1.9% increase compared to the same period last year. Service revenue (revenue excluding device sales from total revenue) achieved 2.9439 trillion KRW, up 1.6% year-on-year, driven by continuous growth in wireless business revenue and expansion of new business in business-to-business (B2B) transactions.

Operating profit for the second quarter recorded 254 billion KRW, down 11.8% compared to the same period last year. Operating profit for the first half of this year was 474.9 billion KRW, a 13.4% decrease compared to the first half of last year.

LG Uplus explained that amortization expenses of intangible assets related to the construction of a new integrated IT system were reflected. Amortization expenses of intangible assets in the second quarter were 109.4 billion KRW, a 27.8% increase compared to the second quarter of last year. LG Uplus is developing and operating a next-generation integrated IT system that facilitates the application of future technologies such as artificial intelligence (AI) and enhances security.

Looking specifically at operating expenses, marketing expenses were 521.7 billion KRW, down 3.3% from 539.7 billion KRW in the second quarter of last year. Advertising expenses during the same period also decreased by 7.8% year-on-year to 44 billion KRW. However, labor costs increased by 12% to 493.9 billion KRW.

5G subscription lines increased by 12.3% year-on-year to 7.413 million, and the proportion of 5G lines among total handset subscription lines rose by 8.1 percentage points to 67.7% compared to the same period last year.

Revenue from the enterprise infrastructure sector, which includes businesses such as IDC (Internet Data Center), solutions, and enterprise lines targeting companies, recorded 431.5 billion KRW, a 5.4% increase compared to the same period last year. In particular, IDC business revenue showed the highest growth among enterprise infrastructure businesses, increasing by 15.0% year-on-year to 91.7 billion KRW.

The smart home sector, composed of high-speed internet and IPTV businesses, continued its growth trend by posting revenue of 618.2 billion KRW, up 2.5% compared to the second quarter of last year, supported by the growth in subscription lines.

This content was produced with the assistance of AI translation services.