LG Uplus posted strong fourth-quarter results on higher revenue from its artificial intelligence (AI) data center business and a rise in mobile subscribers after the KT hacking incident.
◇ Operating profit up 20% in Q4 from a year earlier… subscriber gains from KT hacking incident
LG Uplus said on Feb. 5 that its operating profit under consolidation for the fourth quarter of 2025 came to 170.5 billion won, up 20% from a year earlier. Revenue for the same period totaled 3.8484 trillion won, an increase of 2.5% from a year earlier. LG Uplus said, "AI data center business revenue and an increase in mobile subscribers drove strong fourth-quarter results." The industry sees a major impact from subscribers switching to LG Uplus as a windfall from the KT hacking incident that erupted in Sep. last year.
Mobile business revenue in the fourth quarter last year was 1.6894 trillion won, up 3.4% from a year earlier. Mobile subscriber lines during the same period increased 7.7% from a year earlier. Excluding Internet of Things (IoT) lines and MVNO (budget phone) lines, "MNO service average revenue per user (ARPU)" in the fourth quarter last year was 35,999 won, up 1.8% from the previous year (35,356 won).
AI data center business revenue in the fourth quarter last year was 135.03 billion won, up 51.6% from a year earlier. Solution business revenue for the same period also came to 185 billion won, up 16.6% from a year earlier. Smart home business revenue, including internet TV (IPTV), was also strong. The smart home institutional sector posted 649.03 billion won in revenue in the fourth quarter last year, up 4.8% from a year earlier.
◇ Annual revenue tops 15 trillion won for the first time
On an annual basis, LG Uplus posted 15.4517 trillion won in revenue and 892.1 billion won in operating profit last year. Revenue rose 5.7% and operating profit increased 3.4% from a year earlier. The gains were mainly attributed to growth in high-value subscriber lines such as mobile subscribers and giga internet, and to strengthening growth momentum in the AI data center business through entry into the DBO (design-build-operate) business.
Last year, mobile institutional sector revenue rose 3.7% from a year earlier to 6.6671 trillion won on the back of subscriber line growth and improved customer satisfaction. The rise in mobile institutional sector revenue was largely driven by the SK Telecom and KT hacking incidents that erupted last year. From Apr. last year to Jan. 13 this year, LG Uplus recorded a net increase of about 337,000 subscribers. Over the same period, SK Telecom lost about 520,000 subscribers, in contrast. Industry insiders expect LG Uplus' mobile market share, currently at 19.7%, could surpass the 20% mark in the first half of this year.
The total number of wireless subscriber lines, including MVNO, reached 30,711,000, surpassing 30 million for the first time. MVNO lines have recorded double-digit growth of more than 10% for seven consecutive years since 2019. Total net additions were 2,196,000 lines.
Last year, the corporate infrastructure institutional sector, which includes AI data centers, solutions and corporate lines, posted 1.8078 trillion won in revenue, up 6% from a year earlier. The AI data center business led corporate infrastructure performance. Along with stable growth at its own data centers and entry into new DBO (design-build-operate) businesses, AI data center revenue last year rose 18.4% from 2024 to 422 billion won. The solutions institutional sector, which includes smart mobility, NW solutions and intermediation messaging businesses, posted 550.3 billion won in revenue, up 4.5% from 2024 on increased network build-outs. Corporate line business revenue also rose 1.6% from a year earlier to 835.5 billion won.
Yeo Myeong-hui, LG Uplus chief financial officer (CFO) and chief risk officer (CRO), said, "This year, we will accelerate structural improvements centered on profitability while strengthening the core competitiveness of the telecommunications business," adding, "To sustain last year's positive momentum, we will increase resource investment in future growth and fundamentals, and do our best to achieve the company's sustainable growth and enhance shareholder value."