LG HelloVision Reports 11.7 Billion KRW Operating Profit in 1Q, Down 9.2% YoY

"Smart Device Sales Base Effect... Stable Growth Trend"

LG HelloVision announced on the 11th through the consolidated financial statement disclosure that it recorded operating revenue (sales) of 277.6 billion KRW, operating profit of 11.7 billion KRW, and net profit of 12.7 billion KRW in the first quarter.

First-quarter operating revenue decreased by 2.8% (8 billion KRW) and operating profit by 9.2% (1.2 billion KRW) compared to last year. The company stated that the base effect of one-time revenue from the sale of educational smart devices in the first quarter of last year impacted the decline in operating revenue; however, excluding this, both operating revenue and subscribers increased simultaneously, maintaining a stable growth trend.

LG HelloVision Headquarters
[Photo by LG HelloVision]

By business segment, home revenue was 168.3 billion KRW (TV 134.4 billion KRW, internet 31.0 billion KRW, etc.), and MVNO (Mobile Virtual Network Operator) revenue was 41.9 billion KRW. Other revenues, including media, rental, and business-to-business (B2B), amounted to 67.4 billion KRW.

All business segments recorded net subscriber increases in the first quarter. Broadcasting subscribers have maintained a growth trend since the launch of LG HelloVision, and internet subscribers have continuously increased since 2020. LG HelloVision is focusing on strengthening the competitiveness of broadcasting and telecommunications products and innovating non-face-to-face customer experiences through the advancement of its direct sales mall, continuing qualitative growth centered on UHD and Giga Internet subscribers. Meanwhile, sales competitiveness on the ground has also been further enhanced based on synergies among home-related businesses.

MVNO subscribers also maintained a net increase. The trend of ‘unlocked phones + SIM cards’ consumption among the MZ generation continues to expand, coinciding with the launch of new premium phones. Accessibility to MVNO eSIMs was improved through the reorganization of the direct sales mall.

Other revenues were driven by rental growth. Hello Rental is leading rational consumers’ choices based on a differentiated trendy home appliance lineup and a self-rental service through the direct sales mall. Additionally, opportunities to expand the B2B market are being explored, such as the launch of the ‘Sajangnim Package’.

In the media sector, the launch of the regional channel commerce app ‘Jecheoljangteo’ expanded the connection between local producers and consumers to mobile platforms following TV and online. The original content competitiveness was also strengthened by introducing a new variety show ‘Monaegi Club,’ co-produced with a general programming channel. Meanwhile, the company is expanding its regional business base by accumulating experience in winning education office contracts, such as the sale of educational smart devices.

Lee Min-hyung, Executive Director (CFO) of LG HelloVision, said, “In the first quarter, product competitiveness and non-face-to-face sales capabilities improved simultaneously, resulting in steady growth with an increase in high-quality subscribers across the business.” He added, “Along with qualitative growth in the home business, we will focus on fostering regional businesses centered on culture, tourism, education, and commerce to secure future growth momentum.”

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