(LEAD) LG Uplus Q2 net income slightly up; operating profit hits record

LG Uplus Corp., a leading South Korean mobile carrier, reported a slight increase in its net income for the second quarter, while its operating profit reached a record high, according to a regulatory filing. The company's net income for the April-June period was 217.7 billion won, a 0.3% rise from the previous year. Operating profit for the same period increased by 13.1% on-year to 344.5 billion won, marking the highest quarterly profit ever recorded.

Sales for the quarter decreased by 3.9% to 3.69 trillion won. The company attributes the stronger-than-expected earnings to growth in its corporate infrastructure business, including AI data centers, as well as cost management and profitability improvements. The corporate infrastructure business revenue grew by 8.6% on-year to 464.4 billion won, with income from its AI data center sector surging by 28.9%.

LG Uplus' mobile division maintained stable growth, with sales rising by 0.9% to 1.66 trillion won. The company is constructing a 200-megawatt AI data center in Paju, north of Seoul, which will be one of the largest AI-related infrastructure projects in the region. Plans are also underway to update the AI contact center system with large language model-based solutions by the second half of the year, with the aim of expanding business beyond the financial sector.

In an effort to boost corporate value, LG Uplus conducted stock buybacks worth 90 billion won in the previous month. The company has set an interim dividend of 270 won, an 8% increase from the previous year.