[DigitalToday reporter Jin-ho Lee (이진호)] LG Uplus posted strong results in the first quarter, supported by balanced growth across all business areas including artificial intelligence (AI) data centres and mobile. On that basis, LG Uplus will raise operating profit through cost efficiency and step up efforts to enhance customer value by also pursuing shareholder return measures such as cancelling treasury shares.

LG Uplus said in a regulatory filing on Wednesday that first-quarter operating profit on a consolidated basis rose 6.6 percent from a year earlier to 272.3 billion won. Operating revenue (sales) was 3.80 trillion won, and service revenue (operating revenue excluding handset revenue) was 3.04 trillion won, up 1.5 percent and 3.3 percent, respectively, from a year earlier.

The operating profit margin came in at 9.0 percent, extending an improvement trend from last year. Net profit rose 8.4 percent to 176.0 billion won.

The company emphasised that balanced growth across all business segments, including mobile, smart home and enterprise infrastructure, and cost management efforts focused on return on investment (ROI) were effective. In the enterprise infrastructure segment, AI data centre revenue rose 31.0 percent to 114.4 billion won, playing a key role. Total revenue in the enterprise infrastructure segment rose 6.3 percent to 435.6 billion won.

Moving away from a co-location focus and expanding into a DBO (Design-Build-Operate) business that spans design, construction and operations provided a foundation for improving the profit structure. LG Uplus plans to expand mid- to long-term new growth opportunities by identifying new AI-based businesses.

The telecoms and home businesses also supported a solid profit structure. Mobile revenue rose 3.2 percent from a year earlier to 1.65 trillion won due to an increase in subscribed lines. Total subscribed lines were tallied at about 30,931,000. The number of 5G handset subscribers rose 11.0 percent from a year earlier to 9,473,000, lifting the 5G penetration rate to 84.2 percent of total handset subscribers.

Revenue in the smart home segment grew 4.1 percent to 656.3 billion won, helped by an increase in gigabit internet subscribers. In the IPTV business, the company secured 5,767,000 subscribers as it strengthened product competitiveness, including its 'AI Shortcut' service that integrates generative AI, despite a difficult domestic environment. That was up 2.8 percent from a year earlier.

LG Uplus also announced a plan on Wednesday to cancel treasury shares to boost shareholder value. It will cancel all treasury shares worth about 80.0 billion won that it has purchased since last year on May 15. LG Uplus also cancelled treasury shares worth about 100.0 billion won in book value in August last year.

Yeo Myung-hee (여명희), LG Uplus' chief financial officer and chief risk officer, said, "We will set strengthening profitability in our core telecoms business as a key task and systematically secure competitiveness in the AX business to build a stable profit structure." She added, "We will consistently pursue this strategic direction to accelerate mid- to long-term growth and continue to enhance corporate value."