LG HelloVision Reports Q1 Operating Profit of 5.1 Billion Won, Down 28.4% Year-on-Year
Revenue Falls 18.5% to 255.4 Billion Won
"Impact of Portfolio Adjustment"
Returns to Profitability from Previous Quarter
One-Off Voluntary Retirement Costs Resolved
On May 7, LG HelloVision announced that its operating profit for the first quarter of this year was 5.1 billion won, down 28.4% from the same period last year. However, the company returned to profitability compared to the previous quarter, as the one-off costs related to voluntary retirement, which were reflected in the fourth quarter of last year, have now been resolved.
Revenue stood at 255.4 billion won, a decrease of 18.5% from a year ago, while net profit rose 1.5% to 3.0 billion won.
Revenue from the broadcasting segment was 120.2 billion won, down 2.1% over the same period. The decline in video-on-demand (VOD) sales appeared to have impacted the results. The mobile virtual network operator (MVNO) segment also saw revenue fall 5.4% to 36.8 billion won, affected by intensified competition among mobile carriers for low-cost plans.
Internet segment revenue was 33.8 billion won, rental business recorded 40.9 billion won, and region-based businesses including media and business-to-business (B2B) sales posted 22.5 billion won. However, revenue from region-based businesses dropped 45.3% year-on-year due to a portfolio adjustment process.
LG HelloVision explained that the contraction of the educational smart device distribution market, combined with challenges in the pay-TV market, contributed to the decline in performance. A company official stated, "Adjustments to the region-based business portfolio through selection and concentration affected the overall revenue scale," and added, "Operating profit also declined in line with the general market environment."
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Youngjun Kim, Executive Director at LG HelloVision, said, "Even amid stagnation in the pay-TV market, we focused on management efficiency and business stability," and added, "Going forward, we will secure a sustainable growth foundation by improving profitability and prioritizing sound operations."
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