SEOUL—LG Uplus Corp., one of South Korea's prominent mobile carriers, announced a 22.8 percent decline in net income for the second quarter, attributing the drop to escalated operating expenses. The company faced significant financial shifts, despite an increase in revenue.
According to Yonhap News Agency, the net profit for the April-June period was 164.6 billion won (US$119.6 million), down from 213.3 billion won in the corresponding period last year, as detailed in a regulatory filing. Operating profit decreased by 11.8 percent to 254 billion won, although sales saw a modest rise of 1.9 percent, reaching 3.49 trillion won. The decrease in net profit was primarily due to costs associated with the installation of a new computer network. Meanwhile, revenue from the company’s mainstay mobile business slightly increased by 1 percent to 1.59 trillion won, bolstered by a 25.6 percent surge in wireless service subscriptions to 27.2 million. Additionally, the infrastructure unit, responsible for the internet data center and other B2B operations, reported a 5.4 percent increase in revenue to 431.5 billion won. Sales in the solutions business unit also grew by 2.7 percent, totaling 130.8 billion won.