LG Uplus posted the highest quarterly operating profit on record.
LG Uplus said on Aug. 6 that it logged revenue of 3.6949 trillion won and operating profit of 344.5 billion won in the second quarter of this year. Revenue fell 3.9% from a year earlier, but operating profit rose 13.1%, setting a new quarterly record. Net profit was 217.7 billion won, up 0.3% on-year, and the net profit margin rose 0.2 percentage points to 5.9%.
The key driver of results was net additions in mobile lines. LG Uplus' mobile subscriptions reached about 31.467 million, up 5.2% from a year earlier. In the second quarter alone, total net additions came to about 536,000 lines. Mobile network operator (MNO) lines were about 22.442 million and mobile virtual network operator (MVNO) lines were about 9.025 million, up 7.2% and 0.4% on-year, respectively. The aggressive acquisition strategy of raising the common subsidy for the Galaxy S26 to as much as 700,000 won, the industry's highest level, in May is seen to have played a role.
5G (fifth-generation) handset subscribers increased 6.9% on-year to 9.548 million, and the 5G penetration rate among all handset subscribers expanded to 84.9%.
Helped by net additions in lines and a higher share of 5G handset subscribers, second-quarter mobile revenue totaled 1.6602 trillion won, up 0.9% from a year earlier.
Smart home also saw revenue rise 4.3% on-year on growth in internet TV (IPTV) and high-speed internet subscribers. Revenue totaled 663.8 billion won, with IPTV revenue up 2.1% to 337.7 billion won and internet revenue up 7.6% to 325.1 billion won. IPTV subscribers were 5.776 million, up 1.3% on-year, and internet subscribers were 5.677 million, up 3.6% on-year.
Enterprise infrastructure revenue was 464.4 billion won, up 8.6% from a year earlier. Artificial intelligence (AI) data center revenue reached 124.1 billion won, up 28.9% on-year, driving growth in enterprise infrastructure. Revenue in the solutions segment, including AI contact centers (AICC) and smart mobility businesses, rose 6.8% on-year to 134.6 billion won as relay messaging revenue increased.
LG Uplus is building a 200 MW-class Paju AI data center, the largest in the Seoul metropolitan area. It plans to proactively respond to rising demand for AI infrastructure by opening the first computing building of the Paju AI data center in the first half of next year. Through design-build-operate (DBO) projects, it will also secure additional power capacity and pursue a regional hub strategy in parallel to strengthen competitiveness in the AI data center business.
LG Uplus decided on the 29th of last month to acquire an additional 90 billion won of treasury shares to boost shareholder value. After it released its "value-up plan" to enhance corporate value in Nov. 2024, LG Uplus has canceled about 180 billion won worth of treasury shares at book value to date. LG Uplus said, "This share buyback is also in line with our policy of expanding shareholder returns through treasury share cancellation."
LG Uplus decided to pay an interim dividend of 270 won per share for 2026. That is about an 8% increase from the prior year's interim dividend. The record date for the interim dividend is Aug. 13, and the payment is scheduled for Aug. 28.
Yeo Myeong-hee, LG Uplus chief financial officer (CFO) and chief risk officer (CRO), said, "We will turn the changes brought by AI proliferation into new growth opportunities and raise operational efficiency and profitability through a companywide AX (AI transformation)," adding, "We will do our best to enhance corporate value while maintaining a balance among investment for future growth, financial soundness, and shareholder returns."