LG Uplus achieved strong results in the second quarter due to the ripple effects from the SK Telecom hacking incident.
LG Uplus announced on the 8th that its revenue for the second quarter of 2025, based on consolidated financial statements, was 3.4964 trillion won, marking an 8.3% increase compared to the same period last year. Operating profit for the second quarter rose to 310.7 billion won, up 23.1% from the previous year.
LG Uplus noted, "The increase in revenue from the wireless business and the growth in wireless subscription lines positively impacted our performance." The background for LG Uplus recording an earnings surprise in the second quarter is the SK Telecom hacking incident that occurred in April. SK Telecom subscribers, feeling uneasy, migrated in droves to competitors KT and LG Uplus. According to the industry, about 800,000 customers are reported to have left SK Telecom.
Revenue from the wireless business in the second quarter increased by 3.8% year-on-year to 1.6542 trillion won. The total number of wireless subscription lines, including MNO and MVNO (budget phones), increased by 9.9% year-on-year to over 29.917 million, surpassing the total of 30 million subscriptions. The MNO subscription lines grew to approximately 20.93 million, up 5.5% from the same period last year, while the number of 5G handset subscription lines rose by 20.5% to 8.93 million.
The smart home sector, consisting of high-speed internet and IPTV services, recorded revenue of 636.6 billion won, a 2.7% increase from the previous year, due to solid growth in internet sales. The launch of the "Premium Safe Compensation Rate Plan," which blocks access to harmful sites, enhances security, and provides compensation for financial damage due to smishing and phishing, contributed to the sales growth, reaching over 50,000 cumulative subscribers just four months after launch.
Additionally, revenue from high-speed internet in the second quarter increased by 6.7% year-on-year to 302.2 billion won. Subscription lines also grew by 4% to 5.479 million. Notably, lines subscribing to services with speeds of 500M or higher accounted for 81.3%, boosting performance. IPTV subscription lines increased by 3.3% year-on-year to 5.699 million.
In the second quarter, the Internet Data Center (IDC) business saw an increase in operating rates due to client occupancy, resulting in sustained revenue growth of 5%, recording a revenue of 96.3 billion won compared to the previous year.
Marketing costs rose to 540.1 billion won in the second quarter, a 3.5% increase compared to the same period last year, due to increased device sales. Capital expenditures (CAPEX) decreased by 29.4% year-on-year to 393.3 billion won.
Yeo Myeong-hee, Chief Financial Officer (CFO) of LG Uplus, said, "This quarter, we could achieve a profit turnaround for the second consecutive quarter through structural cost competitiveness improvement activities," adding, "Even amid market uncertainties such as the abolition of the Device Subsidy Law, we will continue to enhance our fundamental service competitiveness and reinforce shareholder returns to enhance long-term corporate value."