LG Display Posts 116 Billion KRW Operating Loss in Q2 as Deficit Widens... First-Half Results Improve

Operating Loss Widens Compared to 93.7 Billion KRW in the Same Period Last Year
Revenue Reaches 5.587 Trillion KRW, Down from Last Year
Net Profit Turns Positive... Operating Loss Improves in the First Half
"Performance Rebound Expected in OLED Business in the Second Half"

On July 24, LG Display announced in a regulatory filing that its consolidated operating loss for the second quarter of this year was provisionally estimated at 116 billion KRW, an increase in losses compared to 93.7 billion KRW in the same period last year.

LG Display Paju Plant Overview. Photo by LG Display

Revenue was 5.587 trillion KRW, a decrease of 16.7% compared to the same period last year. Net profit amounted to 890.8 billion KRW. The operating loss was 1.7% lower than the market consensus of 118 billion KRW.

LG Display noted that its performance in the first half of the year showed some improvement compared to the same period last year and expressed a positive outlook for future results. In the first half of this year, revenue was 11.6523 trillion KRW and operating loss was 82.6 billion KRW. Compared to the first half of last year (revenue of 11.9612 trillion KRW and operating loss of 563.1 billion KRW), revenue decreased by 3%, but operating profit and loss improved by 480.5 billion KRW.

The company attributed these results to the advancement of its business structure focused on organic light-emitting diodes (OLED), improvements in cost structure, and enhanced operational efficiency. LG Display also assessed that the company continues to move toward an annual performance turnaround.

The second quarter is traditionally a low season, with demand declining before the launch of new products in the second half of the year. The company analyzed that a decrease in mobile shipment volume compared to the previous quarter also partially impacted results. The end of the LCD TV business as part of the OLED-focused business structure strategy and the decline in the won-dollar exchange rate also had an effect.

However, net profit for the quarter turned positive, reaching 890.8 billion KRW, as other income such as improved foreign exchange gains due to exchange rate fluctuations and profit from the sale of the Guangzhou LCD plant stake were reflected.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter was 1.0539 trillion KRW, with a margin of 18.9%. By product sales composition (based on revenue): TV panels accounted for 20%, IT panels (monitors, notebook PCs, tablets, etc.) for 42%, mobile panels and other products for 28%, and automotive panels for 10%.

Meanwhile, LG Display reported that OLED products accounted for 56% of total sales, a 4 percentage point increase compared to the same period last year. In this context, the company is expanding its business performance based on strengthened OLED technological competitiveness. Additionally, LG Display plans to continue focusing on cost innovation and operational efficiency to further solidify its business fundamentals.

For the small- to mid-sized business segment, LG Display aims to enhance its competitiveness in the high-end market by leveraging its technological leadership in "Tandem OLED" technology, which offers long lifespan, high brightness, and low power consumption, as well as its stable supply capabilities for smartphone panels.

For the large-sized business segment, the company plans to solidify its leadership in the premium market with a diverse OLED panel lineup that delivers differentiated value, including OLED TVs equipped with fourth-generation OLED panels using proprietary "Primary RGB Tandem" technology and gaming monitors that have achieved a triple crown with the world's highest brightness, refresh rate, and response speed.

In the automotive business, LG Display will continue to create differentiated customer value based on innovative technology and product competitiveness that enable ultra-large size, high definition, reliability and durability, low power consumption, and a variety of form factors.

Kim Sunghyun, Chief Financial Officer (CFO) of LG Display, stated, "In the second half of the year, we expect to see a sharp rebound in performance across the OLED business. We will continue to pursue cost innovation and operational efficiency to strengthen a stable profit structure," adding, "Financial structure improvements such as early repayment of loans and reduction of borrowings are progressing faster than initially planned, so we expect to deliver meaningful results in both performance and financial structure this year."

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