LG Uplus Posts 6.6% Increase in Q1 Operating Profit...AIDC Sales Up 31%

Mobile Subscription Lines Increase by 6.4%
LG Uplus to Retire Treasury Shares Worth 80 Billion Won

LG Uplus has reported a rise in earnings, driven by the stable growth of its mobile and internet businesses. The Artificial Intelligence Data Center (AIDC) business, which the company has recently prioritized, achieved double-digit growth and contributed to the overall performance.

LG Uplus logo. Provided by LG Uplus

LG Uplus announced that, on a consolidated basis, its operating profit for the first quarter of this year reached 272.3 billion won, up 6.6% compared to the same period last year. Revenue increased by 1.5% to 3.8037 trillion won, while net profit grew 8.4% to 176 billion won during the same period.

The increase in mobile subscribers had a positive effect on the company's results. Revenue from the mobile segment totaled 1.6526 trillion won, a 3.2% increase from a year earlier. The total number of mobile subscription lines reached approximately 30,931,000, up 6.4% year-on-year. Among these, Mobile Network Operator (MNO) lines numbered about 21,967,000, marking a 7.1% increase, while Mobile Virtual Network Operator (MVNO) lines totaled roughly 8,964,000, up 4.7% over the same period.

The enterprise infrastructure segment also experienced growth. The enterprise infrastructure division, which includes AIDC, solutions, and corporate lines, recorded sales of 435.6 billion won, up 6.3% from the previous year. In particular, the AIDC business grew 31% year-on-year to 114.4 billion won. According to LG Uplus, the growth in the design, build, and operate (DBO) business segment, in addition to the existing co-location business, contributed to the AIDC performance. A representative from LG Uplus stated, "Our AIDC business is moving beyond the traditional co-location model and expanding in earnest into the DBO field, diversifying both our business areas and revenue structure. Through the discovery of new AI-based businesses, we aim to expand opportunities for long-term growth."

Elsewhere, the smart home division, which includes Internet TV (IPTV) and internet services, reported sales of 656.3 billion won, up 4.1% from the same period last year. The number of internet subscribers rose 4.5% to 5.64 million, while IPTV subscribers increased 2.8% to 5.767 million over the same period.

Meanwhile, to enhance shareholder value, LG Uplus has decided to retire all of its treasury shares, valued at approximately 80 billion won, on May 15. In August last year, LG Uplus retired treasury shares worth 100 billion won based on book value. The company plans to continue activities to increase shareholder value in line with its 'Value-Up Plan' announced in November 2024.

Myunghee Yeo, Chief Financial Officer (CFO) of LG Uplus, stated, "Strengthening the profitability of our core telecommunications business is a key priority, and we will systematically enhance the competitiveness of our AI transformation (AX) business to establish a stable revenue structure. We will consistently pursue our strategic direction to accelerate mid- to long-term growth and continuously enhance corporate value."

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