LG Uplus (032640) Q3 2026 earnings summary

Executive summary

• Q3 operating profit rose 84.1% YoY to KRW 297.6bn; service revenue was KRW 3,102.1bn, down 0.5% YoY.

• Profit growth partly reflected a prior-year one-off labor-cost comparison; service growth, cost restructuring and AI-led customer experience supported momentum.

• Growth drivers included enterprise/AIDC, home broadband and mobile subscribers; AI services and infrastructure remain strategic investment priorities.

Financial highlights

• Consolidated operating revenue was KRW 3,981.3bn, down 0.7% YoY and up 7.8% QoQ; service revenue was KRW 3,102.1bn, down 0.5% YoY and up 0.8% QoQ.

• Operating profit was KRW 297.6bn, up 84.1% YoY and down 13.6% QoQ; profit before tax was KRW 258.4bn, up 146.5% YoY.

• Net profit was KRW 183.1bn, up 272.8% YoY and down 15.9% QoQ; EBITDA was KRW 991.6bn, up 19.3% YoY and down 4.2% QoQ.

• Consolidated operating expenses fell 4.3% YoY; standalone expenses fell 3.0%, while marketing expense increased 5.6% to KRW 612.9bn.

• Cumulative service revenue grew 1.6% YoY consolidated and 2.4% on a standalone basis, outperforming guidance.

Outlook and guidance

• Q4 is expected to sustain core-business growth and cost-efficiency gains; FY2026 results are expected to improve meaningfully YoY.

• Priorities include expanding AI services, commercializing AICC solutions, securing metropolitan AIDC capacity and strengthening submarine cable operations.

• Paju AIDC facilities 2–4 have secured demand, with design and construction underway; partnerships for additional DBO projects are expanding.

• FY2026 CapEx is expected to rise slightly YoY and 2027 CapEx to increase, with scale and timing dependent on Paju AIDC investment pace.

• Q4 mobile competition is expected to ease QoQ; higher GPU-compute, enterprise/public-sector AI and international network traffic demand present growth opportunities.