{"id":111264,"date":"2026-08-06T18:15:07","date_gmt":"2026-08-06T18:15:07","guid":{"rendered":"https:\/\/www.europesays.com\/korea\/111264\/"},"modified":"2026-08-06T18:15:07","modified_gmt":"2026-08-06T18:15:07","slug":"lg-uplus-corp-xkrx032640-q2-2026-earnings-call-highlights-record-operating-profit-and","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/korea\/111264\/","title":{"rendered":"LG Uplus Corp (XKRX:032640) (Q2 2026) Earnings Call Highlights: Record Operating Profit and …"},"content":{"rendered":"\n

This article first appeared on GuruFocus<\/a>. <\/p>\n

Consolidated Service Revenue: KRW3.1 trillion in Q2, up 2% year over year. <\/p>\n

Standalone Service Revenue: KRW2.9 trillion, up 2.8% year over year. <\/p>\n

Consolidated Operating Profit: KRW344.5 billion, up 13.1% year over year, a new quarterly record. <\/p>\n

Consolidated Net Profit: KRW217.7 billion, up 0.3% year over year. <\/p>\n

Consolidated EBITDA: KRW1,034.8 billion, up 5.9% year over year. <\/p>\n

Standalone CapEx: KRW477.8 billion, up 21.5% year over year. <\/p>\n

Consolidated Debt-to-Equity Ratio: 114.1%, down 3 percentage points year-to-date. <\/p>\n

Mobile Service Revenue: KRW1,595.9 billion, up 1.2% year over year. <\/p>\n

Mobile Subscriptions: 31,467,000, up 5.2% year over year; 5G penetration reached 84.9%. <\/p>\n

Marketing Expense: KRW572.1 billion, up 7.6% year over year but down 6.9% quarter over quarter; accounted for 19.9% of total service revenue. <\/p>\n

Smart Home Revenue: KRW663.8 billion, up 4.3% year over year. <\/p>\n

IPTV Revenue: KRW337.7 billion, up 2.1% year over year. <\/p>\n

Broadband Internet Revenue: KRW325.1 billion, up 7.6% year over year. <\/p>\n

Enterprise Infrastructure Revenue: KRW464.4 billion, up 8.6% year over year. <\/p>\n

AIDC Revenue: Up 28.9% year over year. <\/p>\n

Interim Dividend: KRW271 per share, up 8% versus last year. <\/p>\n

Share Buyback: KRW90 billion, larger than last year, premised on cancellation of shares. <\/p>\n

Release Date: August 06, 2026 <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n

Positive Points <\/p>\n

LG Uplus Corp (XKRX:032640<\/a>) reported a record quarterly operating profit of KRW344.5 billion, up 13.1% year over year, with profitability improvement even excluding one-time factors. <\/p>\n

The company is accelerating its Paju AI data center build-out to meet surging demand, with a phased pipeline that can flexibly respond to market changes and is expected to improve profitability compared to existing data centers. <\/p>\n

Mobile service revenue grew 1.2% year over year, with 5G penetration reaching 84.9% and total subscriptions up 5.2%, while marketing expenses declined 6.9% quarter over quarter, improving cost efficiency. <\/p>\n

Smart Home revenue grew 4.3% year over year, driven by a 7.6% increase in broadband Internet revenue, and the launch of U+tv Free5 for iPad was met with positive market feedback, boosting subscriber growth. <\/p>\n

Enterprise infrastructure revenue rose 8.6% year over year, with AIDC revenue up 28.9%, and the company is expanding its AICC solutions with insourced products, gaining traction in the financial sector. <\/p>\n

The company increased its interim dividend by 8% to KRW271 per share and announced a KRW90 billion share buyback, reflecting a commitment to progressive shareholder returns. <\/p>\n

Negative Points <\/p>\n

LG Uplus Corp (XKRX:032640<\/a>) faces uncertainty in predicting GPU-based AI demand, which could impact the efficiency and returns of its significant AIDC investments. <\/p>\n

The company’s standalone CapEx increased 21.5% year over year to KRW477.8 billion, driven by AIDC expansion, which may pressure cash flows despite being within EBITDA scope. <\/p>\n

Mobile service revenue growth slowed to 1.2% year over year, and the company expects further moderation in the second half, potentially affecting overall revenue momentum. <\/p>\n

Marketing expenses rose 7.6% year over year, indicating continued competitive pressure in the telecom market despite sequential improvement. <\/p>\n

The company’s AIDC investment strategy relies on a dual-track approach with DBO projects, which may carry execution risks and require careful capital management to maintain financial soundness. <\/p>\n

There is potential overlap with affiliate LG CNS in the AIDC business, which could lead to market confusion or inefficiencies, though the company emphasizes collaboration under the One LG strategy. <\/p>\n

Q & A Highlights <\/p>\n

Q: What impact will the AIDC investment have on LG Uplus’s financial position, and are there plans for additional financing? Also, how does the profitability of new AIDCs like Paju compare to existing data centers?A: CFO Yeo Myunghee stated that while 2026 CapEx will increase year-over-year due to expanded AIDC investment, it will remain within the scope of EBITDA, supported by a steady free cash flow position. The company is also utilizing asset-light models like leasing and DBO to alleviate cash pressures. There is no need for external capital raising, as investments remain within mid-to-long-term financial targets under the corporate value enhancement plan. Regarding profitability, Enterprise AI Business Lead Jeong Yong Hoon explained that new data centers like Paju AIDC are expected to improve profitability compared to existing ones. This is driven by higher rack space pricing due to increased infrastructure investment for liquid cooling and AI servers, as well as higher electricity usage from AI-specific applications, which is a pay-as-you-go model. <\/p>\n

Q: Will there be any changes to the annual guidance or the direction of the shareholder return policy?A: CFO Yeo Myunghee confirmed that first-half standalone service revenue grew 3.4% year-over-year, outperforming the 2% guidance target. While mobile revenue growth may moderate in the second half, the company expects to achieve its annual guidance without difficulty. Supported by earnings growth and a progressive shareholder return approach, LG Uplus increased the size of the share buyback to KRW90 billion and the interim dividend to KRW271 per share, an 8% increase year-over-year. The company remains committed to progressive shareholder returns and enhancing corporate value, while maintaining a balance between growth investments and financial stability. <\/p>\n

Q: What is the AI strategy direction for the greater LG Group, and what role will LG Uplus play within that scope?A: CSO Kevin Cho explained that LG Group operates under a “One LG” strategy to enhance AI infrastructure and generate new value. By combining the capabilities of affiliates in cooling, power, operation, and network, the group aims to strengthen its AI infrastructure business competitiveness. This is connected to AI technology like EXAONE from the AI R&D center. LG Uplus serves as a key pillar in AI infrastructure management and operations, with AIDC infrastructure in key metropolitan locations, network connectivity, and data center operational know-how. The plan is to expand AI infrastructure, maximize synergies across the group, and manage operational risk through demand-supported investment and efficient capital management. <\/p>\n

Q: There is potential overlap between LG Uplus and LG CNS in the AIDC business. What are the differences and synergies between the two companies?A: Jeong Yong Hoon, Head of Enterprise AI Business, clarified that while both LG Uplus and LG CNS have capabilities in designing, building, and operating AIDC centers, there are differences in business models based on capabilities and customer bases. LG Uplus provides an integrated package of data centers plus telecom network, operating its own invested centers and DBO projects, securing the largest data center capacity. Rather than competing, the two companies are working together to grow the market for the greater LG Group, focusing on expanding customer value and strengthening capabilities through the “One LG” solution. <\/p>\n

Q: Can you provide more details on the mobile business performance and the new initiatives introduced in Q2?A: Kang Jin-wook, Head of Mobile and Digital Business, reported that Q2 mobile service revenue increased 1.2% year-over-year to KRW1,595.9 billion, with total mobile subscriptions reaching 31.467 million, up 5.2% year-over-year. 5G penetration rose to 84.9%. Marketing expenses were KRW572.1 billion, declining 6.9% quarter-over-quarter, with marketing spend accounting for 19.9% of service revenue. The company launched the “Simply 2.0” rate plan, simplifying 53 different 5G and LTE plans into 18, and introduced the All-in-One product for unified mobile and internet applications. Additionally, ixi-O Roaming Call was launched across 170 countries, allowing voice calls without international fees. LG Uplus achieved its first-ever number one ranking in the mobile telecommunication service category of the 2026 NCSI index. <\/p>\n

Q: What were the key highlights for the Smart Home business in Q2?A: Oh In-ho, Executive Vice President of Media Business, reported that Smart Home revenue grew 4.3% year-over-year to KRW663.8 billion. IPTV revenue increased 2.1% to KRW337.7 billion, while broadband Internet revenue grew 7.6% to KRW325.1 billion, driven by Giga Internet subscriber growth. The company introduced a 200-meg rate plan for higher data usage and launched the simple All-in-One plan combining mobile and internet. The world-first U+tv Free5 for iPad was released, leading to a surge in tv Free subscribers. LG Uplus achieved number one ranking for five consecutive years in the NCSI survey for IPTV and was recognized as number one by KSQI index in the customer center category. <\/p>\n

Q: What is the current status and outlook for the enterprise infrastructure business, particularly AIDC?A: Jeong Yong Hoon reported that Q2 enterprise infrastructure revenue was KRW464.4 billion, up 8.6% year-over-year, with AIDC revenue up 28.9% driven by colocation growth. The company is building a 20-megawatt AI data center in Paju, the largest in the metropolitan area, with four data halls opening sequentially from 2027 to 2028. LG Uplus is making investments worth approximately KRW2 trillion to respond to demand, including DBO projects for additional capacity. The company is also enhancing its AICC solutions, leveraging its own experience running a customer contact center with 4,000 employees. In the first half, internally-sourced Consult Advisor and AI Auto QA were brought to on-prem business, particularly for the financial industry. In the second half, the company plans to expand the product lineup with LLM-based call bots, chatbots, and VOC Insight generators. <\/p>\n

Q: What were the overall Q2 2026 financial results for LG Uplus?A: CFO Yeo Myunghee reported that Q2 consolidated service revenue was KRW3.1 trillion, growing 2% year-over-year, and standalone service revenue was KRW2.9 trillion, up 2.8%. Consolidated operating profit reached a new quarterly record of KRW344.5 billion, up 13.1% year-over-year, and <\/p>\n

For the complete transcript of the earnings call, please refer to the full earnings call transcript<\/a>. <\/p>\n","protected":false},"excerpt":{"rendered":"This article first appeared on GuruFocus. Consolidated Service Revenue: KRW3.1 trillion in Q2, up 2% year over year.…\n","protected":false},"author":2,"featured_media":111265,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[28556,57066,2858,315,314,2095,20020,57067,57065],"class_list":["post-111264","post","type-post","status-publish","format-standard","has-post-thumbnail","category-lg","tag-aidc","tag-broadband-internet-revenue","tag-data-center","tag-lg","tag-lg-group","tag-lg-uplus","tag-mobile-service","tag-quarterly-record","tag-service-revenue"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/111264","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/comments?post=111264"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/posts\/111264\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media\/111265"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/media?parent=111264"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/categories?post=111264"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/korea\/wp-json\/wp\/v2\/tags?post=111264"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}