(LEAD) LG Uplus Q2 net income down 22.8 pct on higher operating costs

LG Uplus Corp., a major South Korean mobile carrier, said Wednesday its second-quarter net profit dropped 22.8 percent from a year earlier due to an increase in operating costs.

Net profit for the April-June period came to 164.6 billion won (US$119.6 million), compared with 213.3 billion won a year ago, the company said in a regulatory filing.

Its operating profit declined 11.8 percent on-year to 254 billion won, while sales rose 1.9 percent to 3.49 trillion won.

Despite higher sales, the company said its net profit was down because of the cost to install a new computer network.

Sales from the mainstay mobile business edged up 1 percent to 1.59 trillion won as the number of its wireless service subscriptions jumped 25.6 percent on-year to 27.2 million.

Revenue from the infrastructure unit, which is in charge of its internet data center and other B2B businesses, also climbed 5.4 percent to 431.5 billion won.

The solutions business unit also reported 130.8 billion won in sales, up 2.7 percent from a year
ago.

Source: Yonhap News Agency