LG CNS sees record-high revenue, operating profit in Q1 

In the first three months of this year, LG CNS had the best performing first quarter in its history. The LG Corp. subsidiary set records for both revenue and operating profit.

The company announced Monday it raked in 885 billion won ($689 million) in revenue and 64.9 billion won in operating profit in the January to March period. That's a 17.3% and a 19.3% jump, respectively, from the same period a year prior. 

LG CNS has posted record-high first-quarter revenue and operating profit for four straight years since 2019.

Founded in 1987, LG CNS provides system and network integration, consulting, and other information technology services.

The company has been focusing on providing cloud, smart factory and smart logistics businesses to major conglomerates around the Korean peninsula. 

The cloud is the biggest contributor to the outstanding performance. 

LG CNS is the country’s largest managed service provider, or MSP. The role of an MSP is to outsource a company’s data and related products to on-demand cloud computing platforms and APIs like Amazon Web Services, Inc. and Microsoft Azure.

In particular, managing Naver Cloud’s Busan Center was a substantial part of its first-quarter operating profit. 

Korean Air Lines Co., Hanwha Life Insurance, and NCSOFT Corp. are a few of its notable clients.

CNS is also growing its smart factory business in a consistent manner.

An employee with LG CNS told The Korea Economic Daily that “There were many opportunities to provide digitization solutions at manufacturing plants following the rising demand for smart factories.”

The smart logistics business has been profitable as well. 

LG’s digital transformation arm is in charge of the logistics centers for Coupang and SSG.com by Shinsegae Inc.

The company also received a consistent stream of commissions from Shinhan Bank Co., Shinhan Investment Corp., and Toss. 

Industry insiders forecast LG CNS to continue on the growth trend – to become one of the integral subsidiaries of the LG Group alongside LG Electronics Inc., LG Innotek, and LG Display Co.

LG CNS is currently preparing for an initial public offering and sent out a request for proposal to securities firms at home and abroad on May 2. 

Those familiar with the development say the IPO will likely take place next year with a valuation of more than 7 trillion won. 

Write to Ji-Eun Jeong at jeong@hankyung.com
Jee Abbey Lee edited this article.