SEOUL, Korea (Oct. 24, 2018) – LG Display reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending September 30, 2018.
◆ Revenues in the third quarter of 2018 increased by 9% to KRW 6,103 billion from KRW 5,611 billion in the second quarter of 2018 and decreased by 12% from KRW 6,973 billion in the third quarter of 2017.
◆ Operating profit in the third quarter of 2018 recorded KRW 140 billion. This compares with the operating loss of KRW 228 billion in the second quarter of 2018 and the operating profit of KRW 586 billion in the third quarter of 2017.
◆ EBITDA in the third quarter of 2018 was KRW 1,020 billion, compared with EBITDA of KRW 681 billion in the second quarter of 2018 and with EBITDA of KRW 1,420 billion in the third quarter of 2017.
◆ Net income in the third quarter of 2018 was KRW 18 billion, compared with the net loss of KRW 301 billion in the second quarter of 2018 and with the net income of KRW 477 billion in the third quarter of 2017.
LG Display recorded KRW 6,103 billion in revenues, a quarter-on-quarter increase of 9% due to strong seasonality in the third quarter of 2018, and turned black, generating KRW 140 billion. This was driven by an increase in LCD panel prices and the company’s focus on differentiated products such as OLED TV panels and high-end IT products, as well as by favorable foreign exchange rate movement.
LG Display has been pioneering the large-size OLED TV panel market since January 2013 when it became the first in the world to start mass production of OLED TV panels. From then on, the company has diversified its customer base through continually introducing cutting-edge, innovative products such as Wallpaper OLED TV panels and Crystal Sound OLED (CSO) panels.
The company’s OLED TV panel business has finally turned to profit in the third quarter of 2018, after five years of growth. The sales volume of OLED TV panels has increased to over 1.7 million panels in 2017, a jump from only 200,000 in 2013, driven by successful global sales.
Panels for TVs accounted for 41% of the revenue in the third quarter of 2018, mobile devices for 21%, tablets and notebook PCs for 20%, and desktop monitors for 18%.
LG Display recorded 119% in the liability-to-equity ratio, 91% in the current ratio, and 33% in the net debt-to-equity ratio as of September 30, 2018. The increased ratios of liability-to-equity and net debt-to-equity compared with the previous quarter were mainly due to the company’s strategic investment into the shift toward a more OLED-focused business structure.
“Panel area shipments in the fourth quarter are expected to increase by a low to mid-single digit percentage due to the seasonality effect. Panel price trends are expected to vary by product size and segment,” said Don Kim, CFO of LG Display.
He added, “2018 and 2019 are critical years for LG Display as it transforms into a more OLED-focused business structure. We will do our best to maximize profitability by expanding our OLED business portfolio while accelerating our pursuit of a differentiated strategy for our LCD business.”
