LG CNS Achieves Record High Performance Last Year... Powered by AI and Cloud

Sales Up 6.7%, Operating Profit Up 10.5%... Revenue Nears 6 Trillion Won
Five Consecutive Years of Record-High Performance
Core Businesses Cloud and AI Achieve Rapid Growth... Sales Up 15.8%

LG CNS achieved its highest-ever performance last year, driven by strong growth in its cloud and artificial intelligence (AI) businesses.

LG CNS announced on the 6th that its sales last year were tentatively recorded at KRW 5.9826 trillion, up 6.7% from the previous year, and operating profit increased by 10.5% to KRW 512.9 billion. Net profit during this period reached KRW 364.9 billion, a 9.8% increase compared to the previous year.

Hyun Shin-gyun, President of LG CNS, is seen making a presentation at an initial public offering (IPO) press conference held at the Conrad Hotel in Yeouido, Seoul on the 9th of last month. Photo by LG CNS

Last year's fourth-quarter results also marked the highest quarterly figures ever, with sales of KRW 2.0242 trillion and operating profit of KRW 200.1 billion. Compared to the same period last year, sales increased by 6.2% and operating profit by 1.1%.

The cloud and AI businesses, considered core sectors of LG CNS, led the growth in performance. Sales from cloud and AI businesses grew by 15.8% year-on-year. The share of cloud and AI sales in total revenue also reached approximately 56% (KRW 3.3518 trillion).

Sales from the smart engineering business, which encompasses smart logistics, smart factories, and smart cities, increased by 3.7% year-on-year to KRW 1.237 trillion. In traditional IT service sectors such as System Integration (SI) and System Management (SM), sales amounted to KRW 1.3938 trillion.

LG CNS Performance Graph for the Last 5 Years. Provided by LG CNS

While strengthening its competitiveness in the cloud and AI sectors, LG CNS has set a goal to continue leading the AI transformation (AX) market.

In June last year, LG CNS became the first in Korea to receive Amazon Web Services (AWS)’s 'Generative AI Competency' certification, and in October of the same year, it became the first in Asia to obtain Google Cloud’s 'Generative AI Specialist' certification. In the AI field, LG CNS is conducting its AI business based on proprietary solutions such as the 'DAP GenAI Platform,' which helps develop generative AI services tailored to customer needs, and 'DRAG,' a multimodal image generative AI.

LG CNS is also actively advancing its AI data center business, a new AI venture. The company is conducting research on 'immersion cooling' technology, considered essential for AI data centers, in collaboration with the Korea Energy Technology Evaluation Institute under the Ministry of Trade, Industry and Energy.