LG Uplus (032640) Q2 2026 earnings summary

Executive summary

• Accelerated AI-driven transformation, operational efficiency, and global expansion, including new AI-powered services, overseas partnerships, and cybersecurity enhancements through the acquisition of PAGO Networks.

• Major developments include expansion in AI/data infrastructure, new data center investments, and the launch of an EV charging JV.

• Interim dividend per share increased by 8% and share buyback program expanded, with full cancellation of treasury shares.

• Maintains strong credit rating (AA/A1) and continues to focus on shareholder returns through dividends and buybacks.

Financial highlights

• Q2 consolidated service revenue reached KRW 3.1 trillion, up 2% year-over-year; H1 2026 consolidated revenue was KRW 7,498.7 billion, up 2.0% year-over-year.

• Consolidated operating profit rose 13.1% year-over-year to KRW 344.5 billion in Q2; H1 operating income was KRW 616.7 billion.

• Net profit was KRW 217.7 billion in Q2 and KRW 396.7 billion for H1 2026; EBITDA increased 5.9% to KRW 1,034.8 billion.

• Standalone CapEx was KRW 477.8 billion in Q2, up 21.5% year-over-year, reflecting investments in AI and infrastructure.

• Basic EPS for H1 2026 was KRW 934; total assets KRW 19,841.8 billion; total equity KRW 9,268.5 billion.

Outlook and guidance

• Annual service revenue growth guidance of at least 2% is being outperformed, with 3.4% growth in the first half.

• Continued focus on AI-driven work innovation, cloud transformation, and overseas service expansion, with ongoing investments in data centers and cybersecurity.

• Focus on expanding B2B and AI-based services, with new data center projects and EV charging business as key growth drivers.