View of LG Uplus headquarters in Yongsan. Photo courtesy of LG Uplus
LG Uplus (032640.KS) achieved its highest-ever quarterly operating profit in the second quarter of this year, driven by growth in its AI data center (AIDC) business and company-wide profitability improvements. AIDC revenue in particular rose 28.9% year-on-year to 124.1 billion won, leading growth in the enterprise infrastructure division. LG Uplus plans to sustain its growth by expanding its AI infrastructure business, anchored by the Paju AIDC, the largest facility in the Seoul metropolitan area.
LG Uplus reported second-quarter revenue of 3.6949 trillion won, operating profit of 344.5 billion won, and net profit of 217.7 billion won on a consolidated basis, the company said on the 6th. Revenue fell 3.9% from a year earlier, but operating profit rose 13.1% to a record quarterly high, and net profit also increased 0.3%.
These results reflected growth in the enterprise infrastructure business, including AIDC, and profitability improvement efforts such as cost efficiency. The enterprise infrastructure division showed the highest growth rate among all businesses. Second-quarter enterprise infrastructure revenue was 464.4 billion won, up 8.6% from a year earlier. AIDC revenue in particular rose 28.9% to 124.1 billion won on the back of expanded colocation (commercial) operations. Solutions division revenue, which includes AICC and smart mobility, grew 6.8% to 134.6 billion won on higher messaging relay revenue.
LG Uplus plans to further expand the AI infrastructure business that drove this operating profit growth. The company is currently building the 200-megawatt Paju AIDC, the largest in the Seoul metropolitan area, and plans to open its computing building in the first half of next year. Through its DBO (design, build, operate) business, the company aims to secure additional power capacity and build regional hubs in parallel to strengthen its AIDC competitiveness. Its AI customer center (AICC) business will also accelerate its expansion from the second half, including adding large language model (LLM)-based solutions.
LG Uplus second-quarter earnings. Image created by ChatGPT
The telecommunications business also maintained stable growth. Second-quarter mobile revenue was 1.6602 trillion won, up 0.9% from a year earlier. Total mobile subscriber lines reached about 31.467 million, up 5.2% from a year earlier, with a net increase of about 536,000 lines in the second quarter alone. 5G subscribers rose to 9.548 million, accounting for 84.9% of all handset subscribers. The smart home division also posted revenue of 663.8 billion won, up 4.3%, driven by an increase in IPTV and high-speed internet subscribers.
LG Uplus also decided to pay an interim dividend of 270 won per share on the 13th for 2026. This represents an increase of about 8% from the previous interim dividend.
Yeo Myung-hee, LG Uplus Chief Financial Officer (CFO) and Chief Risk Officer (CRO), said, “We will connect the changes that the spread of AI will bring into new growth opportunities and strengthen our growth foundation by improving operational efficiency and profitability through company-wide AX. We will continue to enhance corporate value while maintaining a balance among investment for future growth, financial soundness, and shareholder returns.”