AI NewsWaveLG CNS Q3 Operating Profit Up 15.0% to 138.2 Billion Won
Key points
- LG CNS Q3 revenue of 1.6643 trillion won
- Operating profit of 138.2 billion won, up 15.0% year on year
- AI cloud and financial next-generation projects drove growth
LG CNS said on the 30th that it recorded third-quarter revenue of 1.6643 trillion won and operating profit of 138.2 billion won. Revenue rose 9.3% and operating profit rose 15.0% from the same period last year. According to AI Times, the company explained that growth in its AI and cloud business and results from financial-sector system-building projects drove the results.
Details differed slightly by outlet. According to iNews24, revenue from the AI and cloud business was 961.5 billion won, up 9.3% from a year earlier. AI Newspaper (인공지능신문) reported that about 58% of total revenue came from the AI and cloud business and that the financial next-generation system building business also posted double-digit growth. Techworld News pointed to the expansion of AI infrastructure and external AX business. Digital Daily reported that large AI infrastructure projects translated into revenue, which appears to have expanded the overall AX business.
Business plans were also revealed on the earnings call held the same day. According to The Elec, LG CNS reached 100% pre-completion leasing at its AI data center project in Jakarta, Indonesia. The same report said it will invest in its GPU service business in stages after confirming demand and business viability. Digital Daily reported that Chief Financial Officer Song Kwang-ryun said the company will expand its GPUaaS business in stages, and its headline said additional investment is under review. Digital Daily also reported that Yu Ki-woong, senior vice president of the AI cloud business unit, expects the share of high-value business to rise as cooperation with OpenAI, Anthropic and Palantir expands. In another Digital Daily article, Yu said the company will target Asia, North America and Europe based on its experience building the Jakarta data center, and stressed its capability in prefabricated modular data centers based on Nvidia Vera Rubin.
Recently, the earnings and strategies of the IT services industry have been highlighted together. EBN compared the two, saying that while Samsung SDS expanded its scale on cloud and logistics, LG CNS improved profitability centered on AI, cloud and financial-sector next-generation projects. Tech M reported that, contrary to market concerns that AI is reducing SI work, the two companies explained that corporate AI adoption is leading to system overhauls and additional build-out demand. IT Chosun reported on the 29th that Samsung SDS and LG CNS are competing in the enterprise AX market, having teamed up with OpenAI and Anthropic. Digital Daily reported that on the 27th, LG CNS obtained ISO 37301, the international standard for compliance management systems, covering its main businesses including AI, cloud and data centers.
Glossary AX means AI transformation, in which a company introduces AI into its work and business to change how it operates. GPUaaS refers to GPU as a service, in which high-performance GPUs are rented as needed.