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LG U+ EARNINGS RELEASE Q2 2026 | 2026.08.06
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Disclaimer The aforementioned forward-looking statements may be influenced by changes in the management environment and related events, and, by their nature, involve uncertainties. As a result, the Company’s actual future results may differ materially from those expressed or implied in such statements. The information contained herein is provided for informational purposes only and should not be relied upon for any legal or investment decisions. The Company hereby expressly disclaims any and all liability for any loss or damage arising from reliance on this information. In addition, the information contained herein has been prepared in advance solely for the convenience of investors of the Company and has not been audited by external auditors. Accordingly, the information is subject to change in the final audit process by external auditors.
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Contents 1. Q2 2026 Highlights 2. Financial Highlights 3. Business Performance 4. Shareholder Returns 5. Appendix 4 7 11 15 17
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1. Q2 2026 Highlights
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AI ServicesAI Infrastructure Key Updates Q2 2026 Highlights Strengthening AI readiness through infrastructure expansion, service innovation, and operational transformation AX-Driven Work Innovation Paju AIDC Phase 2 DC1 Office DC3DC2 • Area: 73,712.20㎡ • IT load : 128MW (Powercapacity 200MW) • Target completion: DC 1: Jun 2027 DC 2 & 3:Nov 2028 Advancing AI Capabilities 5 AI Call Agent Cybersecurity Services Overseas Expansion & Service Enhancement Foundation for Integrated Security • Agreed on ixi-O’s commercial launch with Maxis in Malaysia • Launched ixi-O Roaming Call • Joint development of a network-based voice AI solution with Ericsson • Acquired PAGO Networks, a cybersecurity firm with real-time threat detection and response capabilities • Offering security solutions and managed services AI-powered Process Redesign AS-IS Manual, People-Intensive Operations TO-BE Workflow Standardization and Data-Driven Automation Expanding Value Creation End-to-End Integration Cloud Transformation • Driving revenue growth through AX-driven sales • AI-powered operational platform • Efficiency & security through cloud migration AI-Dedicated Data Center • Designed to support next-generation GPU servers with up to 250kW per rack • Applied technologies that can reliably manage and stabilize GPU server power fluctuations
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Key Performance Q2 2026 Highlights 3,016 3,077 2Q25 2Q26 Unit: KRW bn 1,645 1,660 637 664 428 464 +2.0% Wireless +0.9% Home +4.3% Enterprise +8.6% Unit: KRW bn 305 272 344 2Q25 1Q26 2Q26 YoY +13.1% QoQ +26.5% Operating profit up +13.1% YoY (+5% YoY, excluding one-offs), driven by enterprise and home revenue growth and continued cost optimization 6 Consolidated Operating ProfitConsolidated Service Revenue
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2. Financial Highlights
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Consolidated Income Statement Financial Highlights Consolidated service revenue was recorded at KRW 3.1tn, +2.0% YoY, attributable to growth in the home and enterprise segments Operating profit reached KRW 344.5bn, +13.1% YoY, with operating margin of 11.2%, driven by ROI-focused profitability improvement 1) Operating Profit / Service Revenue 2) Net Income / Operating Revenue 3) EBITDA / Service Revenue Unit: KRW bn 8 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Operating Revenue 3,844.4 4,010.8 3,848.4 3,803.7 3,694.9 -3.9% -2.9% Service Revenue 3,016.4 3,116.6 3,191.3 3,037.0 3,076.5 +2.0% +1.3% Handset Revenue 828.0 894.2 657.1 766.8 618.4 -25.3% -19.3% Operating Expenses 3,539.9 3,849.2 3,677.9 3,531.5 3,350.4 -5.4% -5.1% Operating Profit 304.5 161.7 170.5 272.3 344.5 +13.1% +26.5% Operating Margin1) 10.1% 5.2% 5.3% 9.0% 11.2% +1.1%p +2.2%p Non-operating Income (Loss) (32.2) (56.9) (67.7) (49.8) (29.4) -8.8% -41.0% Profit Before Tax 272.3 104.8 102.8 222.5 315.1 +15.7% +41.6% Net Profit 217.1 49.1 80.6 176.0 217.7 +0.3% +23.7% Net Profit Margin2) 5.6% 1.2% 2.1% 4.6% 5.9% +0.2%p +1.3%p EBITDA 977.2 831.3 859.4 958.8 1,034.8 +5.9% +7.9% EBITDA Margin3) 32.4% 26.7% 26.9% 31.6% 33.6% +1.2%p +2.1%p
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Consolidated Balance Sheet Financial Highlights Total assets and totalequity increased by +0.8% and +2.2%, respectively, and total liabilities decreased by -0.4% vs. FY25 Net debt to equity decreased to 48.6%, down -6.3%p, and total liabilities to equity ratio decreased to 114.1%, down -3.0%p 2025.12 2026.06 vs. 2025.12 Total Assets 19,681.8 19,841.8 +0.8% Cash and Cash Equivalents1) 890.4 1,258.4 +41.3% Property, Plant and Equipment 10,627.6 10,402.4 -2.1% Right-of-use Assets2) 1,201.2 1,137.6 -5.3% Intangible Assets 1,459.6 1,301.0 -10.9% Total Liabilities 10,614.3 10,573.3 -0.4% Accounts Payable and Other Payables 2,327.4 2,366.9 +1.7% Borrowings3) 5,870.4 5,766.8 -1.8% Lease Liabilities2) 1,166.5 1,125.0 -3.6% Total Equity 9,067.5 9,268.5 +2.2% Capital Stock 2,574.0 2,574.0 +0.0% Other Equity (Treasury Stock) (60.5) 0.0 -100.0% Retained Earnings 5,474.4 5,617.4 +2.6% Non-controlling Interests 200.7 197.7 -1.5% Net Debt4) 4,980.1 4,508.4 -9.5% Net Debt to Equity Ratio5) 54.9% 48.6% -6.3%p Total Liabilities to Equity Ratio6) 117.1% 114.1% -3.0%p 1) Includes cash & cash equivalents and short-term financial instruments 2) Recognized under IFRS 16 3) Includes short-term borrowings, long-term borrowings, bonds, and other long-term debt 4) Lease liabilities excluded 5) Net debt / Total Equity 6) Total liabilities / Total Equity Unit: KRW bn 9
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Operating Expenses and Capex Financial Highlights Operating expenses decreased by -2.5% YoY Marketing expenses rose +7.6% YoY, down -6.9% QoQ, accounting for 19.9% of service revenue Capex increased to KRW 477.8bn, +21.5% YoY 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Operating Expenses 3,185.8 3,557.0 3,367.9 3,274.9 3,105.3 -2.5% -5.2% Wages 358.7 501.5 378.9 354.9 349.8 -2.5% -1.4% Sales Commissions 517.5 550.4 550.2 563.6 562.0 +8.6% -0.3% Advertising Expenses 37.0 44.7 53.3 40.4 37.6 +1.6% -7.1% D&A 641.5 641.8 660.7 657.4 661.0 +3.0% +0.5% Depreciation 527.8 529.4 547.5 542.0 545.6 +3.4% +0.6% Amortization 113.7 112.4 113.2 115.4 115.5 +1.5% +0.1% Marketing Expenses 531.9 580.2 627.4 614.2 572.1 +7.6% -6.9% Marketing / Service Revenue 19.0% 20.1% 21.2% 21.7% 19.9% +0.9%p -1.8%p Unit: KRW bn 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Capex 393.3 438.1 585.5 317.2 477.8 +21.5% +50.6% 10 ※ Standalone basis ※ Standalone basis Unit: KRW bn
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3. Business Performance
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2Q26 Wireless Service Revenue YoY +1.2% • Total wireless subscriber count grew +5.2% YoY • 5G handset penetration reached 84.9% Wireless Business Performance 1) Standalone basis, includes base fees, voice, value-added services, revenue deductions, and data revenue 2) Based on MSIT reporting standards Unit: KRW bn, ‘000 12 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Wireless Revenue1) 1,645.2 1,701.5 1,678.6 1,652.6 1,660.2 +0.9% +0.5% Service Revenue 1,576.6 1,617.4 1,604.5 1,587.8 1,595.9 +1.2% +0.5% Interconnection 68.6 84.2 74.1 64.8 64.3 -6.2% -0.8% Subscribers2) 29,917 30,259 30,711 30,931 31,467 +5.2% +1.7% MNO 20,930 21,204 21,706 21,967 22,442 +7.2% +2.2% MVNO 8,987 9,055 9,005 8,964 9,025 +0.4% +0.7% Total Net Additions 842 342 452 220 536 -36.3% +143.4% CX Innovation • Simply 2.0 Simplified mobile plans from 53 to 18 with automatic age-based benefits • ixi-O Roaming Free international call launched in Japan, with coverage planned to expand to 168 countries • Customer Satisfaction Ranked No. 1 in NCSI Telecom for the first time
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2Q26 Smart Home Revenue YoY +4.3% • IPTV grew +2.1% YoY, driven by subscriber and ARPU growth • Broadband grew +7.6% YoY, driven by Giga subscriber increase Smart Home Business Performance 13 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Smart Home Revenue 636.6 673.4 649.3 656.3 663.8 +4.3% +1.2% IPTV 330.5 334.2 332.2 335.1 337.7 +2.1% +0.8% Broadband 302.2 311.3 314.3 320.0 325.1 +7.6% +1.6% Others 3.9 27.8 2.8 1.2 1.1 -71.9% -8.2% Subscribers1) IPTV 5,699 5,739 5,739 5,767 5,776 +1.3% +0.2% Broadband 5,479 5,541 5,578 5,640 5,677 +3.6% +0.7% Unit: KRW bn, ‘000 1) Based on MSIT reporting standards Product Competitiveness • 200Mbps Plan Expanded customer choice for households and small businesses • All-in-one Plan Bundled mobile & broadband subscription in one step • U+tv Free 5 for iPad IPTV on iPad, growth in U+tv Free subscribers • Customer Trust Ranked No. 1 in NCSI IPTV for 5 consecutive years
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2Q26 Enterprise Revenue YoY +8.6% • AIDC grew +28.9% YoY, due to colocation revenue growth • Solution grew +6.8% YoY, driven by enterprise messaging demand Enterprise / Telephony Business Performance 1) NW Solution, Smart Mobility, AICC, etc. 2) B2B Internet, Leased line, etc. 14 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Enterprise Revenue 427.7 427.9 542.4 435.6 464.4 +8.6% +6.6% AIDC 96.3 103.1 135.3 114.4 124.1 +28.9% +8.5% Solution1) 126.0 120.3 185.0 117.9 134.6 +6.8% +14.2% Enterprise Line2) 205.4 204.5 222.1 203.3 205.7 +0.2% +1.2% Unit: KRW bn Unit: KRW bn 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Telephony Revenue 84.5 84.5 87.0 84.5 83.3 -1.4% -1.4% VoIP 41.0 41.3 41.4 40.9 41.1 +0.3% +0.3% Enterprise / International 43.6 43.3 45.7 43.6 42.2 -3.1% -3.1% AI Businesses • AIDC Developing a 200MW campus in the Seoul metropolitan area, with four buildings scheduled for completion in 2027-2028 Expanding capacity through DBO & establishing regional hubs • AICC Deploying in-house solutions for financial institutions
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4. Shareholder Returns
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Shareholder Returns Share Buybacks and Cancellation Unit: KRW 650 650 650 660 2022 2023 2024 2025 2026 250 250 250 250 270 Interim dividend per share increased +8.0% to KRW 270 (Record date: August 13) Expanded share buyback program under the 「Value-up Plan」 (KRW 80bn in 2025 → KRW 90bn in 2026) Dividend per Share Interim Dividend 2Q26 3Q25 • Full cancellation of treasury shares (KRW 100bn, 1.55%) • Additional share buyback announced (KRW 80bn) 4Q25 3Q26 • Disclosed Value-Up Plan Implementation Status (‘25.11) • Full cancellation of treasury shares (KRW 80bn, 1.26%) • Further share buyback announced (KRW 90bn)
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5. Appendix
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Consolidated Financial Statements Appendix 18 Unit: KRW bn 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Operating Revenue 3,844.4 4,010.8 3,848.4 3,803.7 3,694.9 -3.9% -2.9% Service Revenue 3,016.4 3,116.6 3,191.3 3,037.0 3,076.5 +2.0% +1.3% Other Revenue 4.4 3.7 3.9 2.7 2.7 -37.8% +0.6% Handset Revenue 828.0 894.2 657.1 766.8 618.4 -25.3% -19.3% Operating Expense 3,539.9 3,849.2 3,677.9 3,531.5 3,350.4 -5.4% -5.1% Wages 486.7 631.2 522.9 477.9 476.9 -2.0% -0.2% Depreciation 550.7 549.2 568.0 563.0 566.6 +2.9% +0.6% Amortization 121.9 120.5 120.9 123.6 123.7 +1.4% +0.1% Fees & Charges 443.2 468.6 469.0 414.9 445.6 +0.5% +7.4% Sales Commission 540.9 577.1 576.6 600.9 581.2 +7.4% -3.3% Advertising 45.5 53.0 60.8 46.4 42.3 -6.9% -8.7% Cost of Handsets Sold 815.8 881.8 783.0 781.0 603.4 -26.0% -22.7% Handsets 786.6 855.3 663.7 759.1 579.1 -26.4% -23.7% Others 29.1 26.5 119.4 21.9 24.3 -16.7% +11.0% Other Expenses 535.1 567.8 576.7 523.9 510.7 -4.6% -2.5% Operating Profit 304.5 161.7 170.5 272.3 344.5 +13.1% +26.5% Non-operating Income 48.2 41.7 45.1 30.8 46.8 -2.8% +52.1% Interest Income 14.0 12.1 13.7 12.3 15.8 +12.3% +27.8% Non-operating Expense 80.4 98.5 112.9 80.6 76.2 -5.2% -5.4% Interest Expense 65.2 61.8 65.1 61.9 61.4 -5.8% -0.8% Profit before Tax 272.3 104.8 102.8 222.5 315.1 +15.7% +41.6% Income Tax 55.2 55.7 22.2 46.4 97.4 +76.4% +109.8% Net Profit 217.1 49.1 80.6 176.0 217.7 +0.3% +23.7% 2025.12 2026.06 vs. 2025.12 Current Assets 5,414.4 5,913.1 +9.2% Cash and Cash Equivalents 890.4 1,258.4 +41.3% Accounts Receivable 1,950.3 1,966.3 +0.8% Inventories 209.8 260.2 +24.0% Non-Current Assets 14,267.4 13,928.7 -2.4% Property, Plant and Equipment 10,627.6 10,402.4 -2.1% Intangible Assets 1,459.6 1,301.0 -10.9% Long-term Accounts Receivable 506.4 550.7 +8.7% Total Assets 19,681.8 19,841.8 +0.8% Current Liabilities 4,676.3 5,341.9 +14.2% Accounts Payable & Other Payables 2,327.4 2,366.9 +1.7% Short-term Debt, etc. 1,402.2 1,955.2 +39.4% Non-Current Liabilities 5,937.9 5,231.4 -11.9% Bond Payables, Long-term Debt 4,468.3 3,811.6 -14.7% Total Liabilities 10,614.3 10,573.3 -0.4% Shareholder’s Equity 8,866.9 9,070.8 +2.3% Capital Stock 2,574.0 2,574.0 - Treasury Stock (60.5) 0.0 -100.0% Capital Surplus 871.5 871.5 - Retained Earnings 5,474.4 5,617.4 +2.6% AccumulatedOtherComprehensiveIncome 7.5 7.9 +6.4% Non-controlling Interests 200.7 197.7 -1.5% Total Shareholders’ Equity 9,067.5 9,268.5 +2.2% Total Liabilities and Shareholders’ Equity 19,681.8 19,841.8 +0.8% ※ Non-controlling interests: LGHV, etc.
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Separate Financial Statements Appendix 1919 Unit: KRW bn 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Operating Revenue 3,496.4 3,713.5 3,551.7 3,546.4 3,452.3 -1.3% -2.7% Service Revenue 2,798.0 2,893.0 2,962.8 2,834.2 2,877.7 +2.8% +1.5% Other Revenue 7.9 7.9 8.2 6.9 6.9 -12.7% -0.1% Handset Revenue 698.4 820.4 588.9 712.2 574.6 -17.7% -19.3% Operating Expense 3,185.8 3,557.0 3,367.9 3,274.9 3,105.3 -2.5% -5.2% Wages 358.7 501.5 378.9 354.9 349.8 -2.5% -1.4% Depreciation 527.8 529.4 547.5 542.0 545.6 +3.4% +0.6% Amortization 113.7 112.4 113.2 115.4 115.5 +1.5% +0.1% Fees & Charges 385.2 409.3 405.0 376.7 396.3 +2.9% +5.2% Sales Commission 517.5 550.4 550.2 563.6 562.0 +8.6% -0.3% Advertising 37.0 44.7 53.3 40.4 37.6 +1.6% -7.1% Cost of Handsets Sold 705.0 832.0 732.3 744.2 571.4 -18.9% -23.2% Handsets 675.9 805.5 612.9 722.4 547.2 -19.0% -24.3% Others 29.1 26.5 119.4 21.9 24.3 -16.7% +11.0% Other Expenses 540.9 577.3 587.5 537.6 527.1 -2.5% -2.0% Operating Profit 310.7 156.5 183.9 271.5 347.0 +11.7% +27.8% Non-operating Income 42.1 33.2 42.1 29.3 37.2 -11.6% +26.9% Interest Income 9.2 7.3 8.7 7.5 10.4 +13.3% +38.2% Non-operating Expense 74.4 90.3 101.0 72.9 69.7 -6.4% -4.4% Interest Expense 59.9 56.7 60.0 56.8 55.6 -7.1% -2.0% Profit before Tax 278.3 99.5 124.9 227.9 314.5 +13.0% +38.0% Income Tax 55.2 54.3 24.3 46.6 98.1 +77.7% +110.4% Net Profit 223.1 45.2 100.7 181.3 216.4 -3.0% +19.4% 2025.12 2026.06 vs. 2025.12 Current Assets 4,841.5 5,315.5 +9.8% Cash and Cash Equivalents 628.6 958.2 +52.4% Accounts Receivable 1,743.8 1,768.4 +1.4% Inventories 199.3 250.1 +25.5% Non-Current Assets 13,873.0 13,555.2 -2.3% Property, Plant and Equipment 10,146.9 9,953.5 -1.9% Intangible Assets 1,029.4 881.3 -14.4% Long-term Accounts Receivable 286.0 322.4 +12.7% Total Assets 18,714.5 18,870.7 +0.8% Current Liabilities 4,237.1 4,923.0 +16.2% Accounts Payable & Other Payables 2,108.0 2,158.1 +2.4% Short-term Debt, etc. 1,212.2 1,779.1 +46.8% Non-Current Liabilities 5,542.5 4,815.9 -13.1% Bond Payables, Long-term Debt 4,158.8 3,482.3 -16.3% Total Liabilities 9,779.7 9,738.9 -0.4% Capital Stock 2,574.0 2,574.0 - Treasury Stock (60.5) 0.0 -100.0% Capital Surplus 823.9 823.9 - Retained Earnings 5,606.3 5,743.9 +2.5% AccumulatedOtherComprehensiveIncome (8.8) (10.0) - Total Shareholders’ Equity 8,934.9 9,131.8 +2.2% Total Liabilities and Shareholders’ Equity 18,714.5 18,870.7 +0.8%
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Subscriber Fact Sheet Appendix 20 Unit: ‘000 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ Wireless Subscribers1) 29,075 29,917 30,259 30,711 30,931 31,467 +5.2% +1.7% Net Adds 561 842 342 452 220 536 -36.3% +143.4% Gross Adds 1,678 2,165 1,918 1,887 1,648 1,884 -13.0% +14.3% Disconnects 1,117 1,323 1,577 1,435 1,428 1,347 +1.8% -5.6% MNO 20,513 20,930 21,204 21,706 21,967 22,442 +7.2% +2.2% Handset 10,957 11,180 11,224 11,209 11,255 11,241 +0.5% -0.1% 5G 8,532 8,930 9,155 9,314 9,473 9,548 +6.9% +0.8% MNO Churn Rate 1.09% 1.06% 1.32% 1.00% 1.22% 1.05% -0.0%p -0.2%p MVNO 8,562 8,987 9,055 9,005 8,964 9,025 +0.4% +0.7% MNO Service ARPU2) 35,523 35,688 36,118 35,999 35,646 35,489 -0.6% -0.4% 1) Based on MSIT statistics 2) Service ARPU: Includes voice and data revenue (excluding sign-up fees and interconnection), value-added service revenue, and revenue deductions (contract and bundled discounts); excludes MVNO-related revenue MNO Wireless Subscribers: Based on the quarterly average of billable subscriber lines, as reported in MSIT statistics 1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 YoY QoQ IPTV(STB)1) 5,611 5,699 5,739 5,739 5,767 5,776 +1.3% +0.2% Net Adds 35 89 39 0 27 9 -89.5% -66.0% VoIP2) 3,098 3,087 3,065 3,039 2,990 2,967 -3.9% -0.8% Net Adds -10 -10 -23 -26 -48 -24 - - Broadband3) 5,396 5,479 5,541 5,578 5,640 5,677 +3.6% +0.7% Net Adds 42 84 62 36 62 38 -55.2% -39.6% PSTN4) 442 439 428 426 426 423 -3.6% -0.7% Net Adds -3 -3 -11 -3 1 -3 - - 1) IPTV: Set-top box subscribers 2) VoIP: Retail and enterprise subscribers 3) Broadband : Based on MSIT statistics 4) PSTN: Retail (VoIP call forwarding) and enterprise subscribers Unit: ‘000
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ir@lguplus.co.kr LG Uplus IR Team +82-70-4473-8019 Michael Sung Youngdeuk Hong Seungwoo Yang Jihoan Cha Gahee Oh Jun Choi