Lotte Innovate reported a double-digit increase in operating profit for the second quarter of this year compared to the same period last year, driven by improved profitability in its core business and enhanced earnings from key subsidiaries.
On July 30, Lotte Innovate announced that it achieved consolidated revenue of 274.5 billion won and an operating profit of 12.4 billion won. The operating profit rose by 54% year-on-year, with the operating profit margin increasing by 1.7 percentage points to 4.5%.
On a standalone basis, the company maintained profitability through selective orders and improved project execution efficiency. A company official stated, “As part of Lotte Group's focus on profitability, we meticulously reviewed the business viability and profitability from the order stage.”
Improved earnings from major subsidiaries also contributed to the growth in consolidated operating profit.
Lotte Innovate is strengthening its long-term growth drivers centered on data center design, construction, and operation (DBO) and artificial intelligence transformation (AX).
The DBO business is identified as a key growth driver that will increase the share of high-value-added projects in the future. Leveraging nearly 20 years of experience operating data centers in Seoul, Daejeon, and Yongin, Lotte Innovate is expanding its DBO business, which encompasses design, construction, and operation.
In November of last year, the company signed a memorandum of understanding with Ace Air Conditioning for collaboration in the data center business, followed by securing the DBO project for the Kamsquare Yongin data center in December. In February of this year, it also obtained the DBO project for the Edge Data Center from Aegis Asset Management.
The company views the growing demand for AX transformation within the group as another long-term growth opportunity. Lotte Innovate is supporting business innovation across group companies based on its self-developed integrated AI platform, 'iMember,' and a 'hybrid AX execution system' that utilizes both in-house and external generative AI.
This strategy aims to actively target AX demand not only from group companies but also from external clients by combining existing capabilities in cloud, intelligent IT outsourcing (ITO), and integrated security.
Lotte Innovate is also enhancing its competitiveness in the physical AI sector. After establishing a dedicated organization for physical AI and robotics in August of last year, the company introduced a future-oriented convenience store featuring humanoids in collaboration with Korea Seven in February.
In April, it was selected for the Ministry of Science and ICT's 'Generative AI Talent Development Project' and is pursuing joint development of physical AI models with KAIST and Yonsei University. This month, it participated in the '2026 Korea AI Innovation Talent Connect' to strengthen the acquisition of key talent in AI and digital fields and enhance industry-academia cooperation.
Subsidiaries are also accelerating the advancement of growth businesses. The electric vehicle charging subsidiary, EVSys, is intensifying its global market efforts, focusing on North America and Southeast Asia. Calibers is enhancing business synergy within the group by combining immersive commerce technology with the retail capabilities of Lotte ON and Lotte Hi-Mart to create new customer experiences.
A Lotte Innovate official stated, “The second-quarter results reflect the outcomes of improved project execution efficiency and the recovery of earnings from key subsidiaries, based on our core business competitiveness. We will continue to focus on profitability while actively commercializing future growth businesses such as data center DBO and AX to solidify our foundation for sustainable growth.”
* This article has been translated by AI.
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