LG Uplus's enterprise infrastructure segment, including artificial intelligence data centers (AIDC), recorded double-digit growth amid stagnation in the telecommunications market, becoming a new source of growth. The company plans to accelerate that growth by expanding capital investment in response to continuing demand for AI infrastructure. LG Uplus announced on November 4 that its consolidated third-quarter 2026 operating revenue, or total revenue, was KRW 3,981.3 billion, service revenue was KRW 3,102.1 billion, and operating profit was KRW 297.6 billion. Service revenue excludes handset revenue from operating revenue. Operating revenue and service revenue declined 0.7% and 0.5%, respectively, from a year earlier because of lower subsidiary revenue. However, standalone service revenue increased 0.7% over the same period to KRW 2,912 billion, while consolidated service revenue for the first three quarters rose 1.6% year on year to KRW 9,215.6 billion, maintaining its growth trend.
Operating profit increased 84.1% year on year to KRW 297.6 billion, reflecting the comparison with one-off personnel expenses a year earlier and improved profitability from business restructuring. The operating profit margin also rose 4.4 percentage points to 9.6%. Standalone capital expenditure increased 30.1% year on year to KRW 569.8 billion as investment in AIDC expanded. Capital expenditure for the first three quarters increased 17.2%. Marketing expenses rose 5.6% year on year to KRW 612.9 billion because of lower handset margins. Third-quarter mobile revenue fell 0.9% year on year to KRW 1,686.7 billion. However, service revenue excluding interconnection revenue grew 0.4% to KRW 1,623.2 billion, supported by growth in total mobile subscriptions. Combined mobile network operator (MNO) and mobile virtual network operator (MVNO) subscriptions increased 6.2% from the third quarter of the previous year to approximately 32,143,000. Of these, MNO subscriptions rose 8.7% to approximately 23,052,000, while MVNO subscriptions increased 0.4% to approximately 9,090,000. Subscriptions for 5G handsets increased 5.0% year on year to 9,611,000. The share of 5G in total MNO handset subscriptions rose to 85.5%. The smart home segment, comprising internet and IPTV services, maintained growth as revenue increased 2.9% year on year to KRW 665.5 billion, supported by higher gigabit internet subscriber numbers and average revenue per user (ARPU). Internet revenue increased 5.4% year on year to KRW 328.3 billion, driving the smart home business. Broadband subscriptions increased 4.2% year on year to 5,776,000, while net additions grew 59.1%. IPTV revenue increased 0.6% to KRW 337.2 billion. Enterprise infrastructure revenue, including AIDC, solutions and enterprise connectivity, increased 10.4% year on year to KRW 472.2 billion, supported by AIDC growth and revenue increases across the segment. AIDC revenue, which led enterprise infrastructure growth, rose 27.7% year on year to KRW 131.7 billion as colocation and design, build and operate (DBO) revenue expanded. It also increased 6.1% from the previous quarter, maintaining steady growth. Solutions and enterprise connectivity also recorded revenue growth, contributing to the expansion of enterprise infrastructure results. Solutions revenue rose 3.4% year on year to KRW 124.4 billion as AI contact center (AICC) revenue expanded, while enterprise connectivity revenue increased 5.7% to KRW 216.1 billion on higher revenue from installation projects. LG Uplus is building an AI data center in Paju with 200 MW of incoming power capacity and plans to bring four buildings into operation in stages by 2028. In particular, the first building, for which customers have already been secured, is being built with a capacity of 50 MW and is scheduled to begin operating after completion in June 2027. LG Uplus Chief Financial Officer Yeo Myung-hee said, “Through the third quarter, we continued to deliver solid improvements in profitability based on stable service revenue growth and greater efficiency in our business structure.” Yeo added, “We will work to continuously enhance corporate value by strengthening the structural competitiveness of our core telecommunications business while translating AI service business opportunities into tangible results.”
Original Korean article: ETNews
English brief by Korea Wind Intelligence, koreawindintel.com
