LG HelloVision's 3Q Operating Profit Up 60% YoY... Impact of Educational Smart Devices

Photo by LG HelloVision

[Asia Economy Reporter Oh Su-yeon] LG HelloVision announced on the 4th through the 'Consolidated Financial Statements Operating Performance' disclosure that it recorded operating revenue (sales) of 325.9 billion KRW, operating profit of 18 billion KRW, and net profit of 13.1 billion KRW in the third quarter.

Third-quarter operating revenue increased by 58.9 billion KRW (22.0%) compared to the same period last year and by 52 billion KRW (19.0%) compared to the previous quarter. Operating profit rose by 6.7 billion KRW (59.6%) year-on-year and by 4.8 billion KRW (36.9%) quarter-on-quarter. Net profit also increased by 5.5 billion KRW (71.9%) year-on-year and by 5.6 billion KRW (74.4%) quarter-on-quarter. The company explained that the increase in operating profit was due to sales of educational smart devices and other one-time income.

By segment, HOME revenue was 170.6 billion KRW (TV 136.8 billion KRW, Internet 30.7 billion KRW, Internet phone 3.1 billion KRW), and MVNO revenue was 41.8 billion KRW (service revenue 38.2 billion KRW, device revenue 3.6 billion KRW). Other revenue, including media, rental (installment sales), and B2B transactions, reached 113.5 billion KRW, up 107.4% compared to the same period last year.

Third-quarter subscribers showed steady growth across the business. The HOME segment maintained about 4 million cable TV subscribers. Internet subscribers have continuously increased since 2020. LG HelloVision is continuously promoting customer-centric HelloTV UI/UX redesign, expanding gigabit internet coverage, and strengthening bundled product competitiveness. The company also began innovating contactless customer experiences with a ‘24-hour lightning installation’ service for cable TV and internet through its direct mall.

MVNO subscribers also maintained net growth. The company explained that targeting the MZ generation seeking a ‘self-paid + MVNO’ combination aligned with the domestic launch of new premium phones, increasing unlimited data SIM benefits, and strengthening contactless distribution channels such as open markets and unmanned stores contributed to this growth.

Other revenue in the third quarter surged significantly due to one-time income from sales of educational smart devices. In the media segment, regional channel commerce broadcasts have been activated, receiving positive responses from local producers and consumers. The original content, including the return of Season 2 of , helped increase the fixed viewer base of regional channels.

In the rental segment, trendy home appliance lineups continue to be launched to suit the preferences of the MZ generation who prefer economical rentals in the high inflation era. The ‘Buy Now’ service, which allows self-rental in one minute through the direct mall, is also gaining consumer favor.

Jae-yong Ahn, CFO of LG HelloVision, stated, “In the third quarter, we expanded the growth margin of operating revenue and operating profit through balanced growth across business segments and the reflection of one-time income such as sales of educational smart devices. We will focus on customer experience innovation for the remaining period, accelerate the improvement of a contactless-centered sales structure, and discover regional business models to secure differentiated growth opportunities.”

This content was produced with the assistance of AI translation services.