AI and Cloud Sales Reach 872.4 Billion Won, Up 8.2%
On July 23, LG CNS announced that its consolidated sales for the second quarter reached 1.4602 trillion won, with an operating profit of 140.8 billion won, representing increases of 0.7% and 2.3%, respectively, compared to the same period last year.
For the first half of the year, sales amounted to 2.6715 trillion won and operating profit reached 219.7 billion won, marking year-on-year increases of 6% and 29.2%, respectively.
The company attributed its performance to continued growth in the artificial intelligence (AI) and cloud sectors. Sales from the AI·cloud business totaled 872.4 billion won, up 8.2% from the same period last year, accounting for 60% of total sales.
In the AI sector, LG CNS expanded its presence by securing major financial and public AX projects. The company is currently undertaking AX projects for leading financial institutions such as NH Nonghyup Bank, Mirae Asset Life Insurance, Mirae Asset Securities, Shinhan Bank, Shinhan Card, Woori Bank, and KB Financial Group.
This year, LG CNS won the largest AI platform project commissioned by a public institution, the Gyeonggi Provincial Office of Education AI platform project, as well as the Ministry of Foreign Affairs AI platform project.
In the cloud sector, revenue from domestic and overseas data center projects became more visible. Recently, the company completed consulting and design for the Indonesia AI data center project globally, and domestically, it secured a large-scale colocation contract with Naver Cloud for the Jukjeon data center.
Additionally, due to the ongoing demand for cloud migration from companies in various industries such as gaming, finance, and logistics, sales of cloud managed service provider (MSP) operations and management services are also increasing.
Sales in the smart engineering sector amounted to 266.7 billion won. In the smart factory domain, the company diversified its customer base, resulting in an order increase of more than sevenfold year-on-year for the first half of the year.
Sales in the digital business services sector reached 321 billion won. Following the first quarter, the company secured large-scale next-generation projects centered on securities and insurance. It also carried out various system integration (SI) and system management (SM) projects in the public sector, including the Ministry of Foreign Affairs, the National Court Administration, and the Corruption Investigation Office for High-ranking Officials, as well as the Bank of Korea's central bank digital currency (CBDC) project.
LG CNS stated that its borrowings and debt ratio have continued to decline. In particular, the debt ratio decreased from 80% in the first quarter to 67% in the second quarter. The company has secured approximately 1.5 trillion won in cash-equivalent assets and about 1.14 trillion won in net cash.
An LG CNS official said, "In the second half of the year, we plan to strengthen our business foundation with the goal of achieving tangible results in the 'Agentic AI' and 'Physical AI' markets." The official added, "We will expand financial and public AX projects using large-scale and lightweight large language models (LLMs) co-developed with LG AI Research's Exaone and Cohere, and will also accelerate our AI data center business."
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