Sales Reach 4.01 Trillion Won, Operating Profit at 161.7 Billion Won
Wireless Subscriptions Surpass 30 Million, AIDC on the Rise
"Strengthening Competitiveness Through Differentiated AI Services"
LG Uplus announced on November 5 that its consolidated sales for the third quarter of this year reached 4.0108 trillion won, with an operating profit of 161.7 billion won.
Sales increased by 5.5% year-on-year, driven by growth in the mobile segment. However, operating profit decreased by 34.3% compared to the third quarter of last year, mainly due to one-off personnel expenses related to voluntary retirement.
LG Uplus stated, "Excluding the 150 billion won spent on voluntary retirement, operating profit would have increased by 26.7% year-on-year to 311.7 billion won, continuing the positive trend seen in the first half."
The total number of wireless subscriptions rose by 8.6% year-on-year to approximately 30.259 million, surpassing the milestone of 30 million total subscriptions for the first time. MNO subscriptions increased by 5.4% year-on-year to about 21.2 million, while MVNO (budget phone) subscriptions grew by 16.8% to around 9.05 million.
The proportion of 5G handset subscribers among all MNO handset subscribers also exceeded 80% for the first time, reaching 81.6%. This represents an increase of 11.4 percentage points compared to the same period last year.
LG Uplus developed various AI services for MNO customers, including the launch of the integrated app 'U+One' with added artificial intelligence (AI) search features, and the rollout of the ixi-O 2.0 update, which enhanced personalized functions.
The Smart Home segment, which includes internet and internet TV (IPTV) businesses, achieved sales of 673.4 billion won, up 3.5% year-on-year, thanks to an increase in gigabit internet subscribers.
The enterprise infrastructure segment, which covers AI data centers, solutions, and corporate lines, recorded sales of 427.9 billion won, a 1.8% increase compared to the same period last year.
AI data center sales rose by 14.5% year-on-year to 103.1 billion won, driven by higher utilization rates following new client occupancy at the Pyeongchon 2 Center and expansion into data center design, build, and operate (DBO) businesses. With demand for AI cloud services expected to grow in the market, continued increases in AI data center sales are anticipated.
Sales from the solutions business decreased by 0.7% year-on-year, mainly due to the transfer of the electric vehicle charging business, while corporate line sales declined by 2.2%.
Yeom Myunghee, Chief Financial Officer and Chief Risk Officer (CFO/CRO) of LG Uplus, said, "We will focus on strengthening our fundamental competitiveness through differentiated AI services, and aim to enhance sustainable corporate value by improving profitability and increasing shareholder returns."
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