Advanced Television

LG Display still losing money

October 27, 2023

LG Display reported continued losses for Q3/2023, marking the sixth straight quarters of deficits, but showed some important signs of improvement through cost-cutting initiatives which boosted the company’s share price.

Demand for personal computers, TVs and mobile phones has been down on last year due to economic uncertainties and rising living costs, leading to device makers buying less components to make them.

Shares in LG Display rose as much as 8 per cent after the earnings result.

LG Display reported revenue of 4.785 trillion won (€3.36bn) and an operating loss of 662 billion won for the quarter-year ending September 30th, 2023. The operating loss was reduced from 881 billion last quarter through efficiency efforts and cost innovations, but sales remained flat.

Comparing the numbers with the same period last year, revenue declined 29 per cent while its operating loss narrowed 13 per cent from 759 billion won in Q3/2022. Net loss also improved to 775 billion won compared to a loss of 774 billion won a year ago.

“We expect to achieve a turnaround in profit in the fourth quarter as excessive panel inventory adjustments are eased in downstream industries,” LG Display CFO Sung-hyun Kim said.

Panel shipments for mid- and large-sized organic light-emitting diode (OLED) displays and new mobile devices are also increasing to meet year-end seasonal demand, Kim added.

Categories: Articles, Business, Results