(LEAD) LG Uplus Q3 operating profit up over 80 pct on base effect, biz optimization

LG Uplus, a leading mobile carrier under LG Group, announced on Wednesday that its operating profit surged 84.1% year-over-year, despite a decline in sales attributed to a base effect and efforts to optimize business operations. The network operator disclosed an operating profit of 297.6 billion won (US$22.1 million) for the July-to-September quarter, according to its regulatory filing.

Net income also experienced a significant 272.8% increase on-year, reaching 183.1 billion won. However, overall sales decreased by 0.7% year-over-year, amounting to 3.98 trillion won. Sales from the mobile service unit declined by 0.9%, while the smart home division, comprising internet and IPTV services, expanded by 2.9%. The company's corporate infrastructure unit saw a remarkable 10.4% increase, driven by its artificial intelligence (AI) data center business, which grew by 27.7% year-over-year.

LG Uplus is currently constructing a 200-megawatt AI data center in Paju, north of Seoul, with commercial operations scheduled to commence in phases by 2028. The company's capital expenditures (CAPEX) for the three months ending in September rose 30.1% year-over-year to 569.8 billion won, reflecting increased investments in AI data centers.