SEOUL, Korea (Oct. 27, 2021) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending September 30, 2021.
◆ Revenues in the third quarter of 2021 increased by 7% to KRW 7,223 billion from KRW 6,738 billion in the third quarter of 2020 and increased by 4% from KRW 6,966 billion in the second quarter of 2021.
◆ Operating profit in the third quarter of 2021 recorded KRW 529 billion. This compares with the operating profit of KRW 164 billion in the third quarter of 2020 and with the operating profit of KRW 701 billion in the second quarter of 2021.
◆ EBITDA in the third quarter of 2021 was KRW 1,696 billion, compared with EBITDA of KRW 1,228 billion in the third quarter of 2020 and with EBITDA of KRW 1,770 billion in the second quarter of 2021.
◆ Net income in the third quarter of 2021 was KRW 463 billion, compared with the net income of KRW 11 billion in the third quarter of 2020 and with the net income of KRW 424 billion in the second quarter of 2021.
LG Display registered KRW 7,223 billion in revenues and KRW 529 billion in operating profit in the third quarter of 2021.
LG Display saw a year-on-year increase of 7% in revenues and a quarter-on-quarter increase of 4%, thanks to the increased shipments of its panels for IT products. The company’s year-on-year operating profit increased by 222%, however, its quarter-on-quarter operating profit decreased by 25% due to falling LCD TV panel prices, an increase in material costs due to the industry’s component shortage, and an increase in costs from the ramp-up of new facilities.
Panels for IT devices accounted for 45% of the revenues, panels for TVs accounted for 32%, and panels for mobile devices accounted for 23%.
LG Display’s large-sized OLED business continued to strengthen its position in the market as the premium TV sector continues to grow. In this regard, the company expects to achieve the annual sales goal of 8 million OLED panels and record annual profit this year. LG Display also saw stable results in the LCD business sector based on its differentiated high-end products and technology along with strengthened partnerships with strategic customers, as it shifted its LCD business structure to focus on the IT sector which helped minimize market fluctuation.
The panel shipments in the fourth quarter are expected to increase by mid-10% compared to the third quarter, with the delayed shipments affected by the industry’s component shortage predicted to return to normal. While the prices of LCD TV panels are expected to remain on a downward trend, ASP (Average Selling Prices) per square meter is expected to slightly rise thanks to an increase in shipments of mobile products with higher ASP.
“LG Display has successfully managed to build the stable business structure that helps it minimize market fluctuation while generating profits by pre-emptively shifting capacity toward competitive IT products and strengthening cooperative partnerships with strategic customers,” said Suh Dong-hee, CFO and Senior Vice President of LG Display. “Based on this, we will continue to generate profits through differentiated IT and Commercial products down the road.”
He also added, “The global TV market is actually showing signs of polarization due to the expansion of the high-end TV market, though it is seemingly getting smaller. It is predicted that OLED TV sales will continue to grow with the rise of high-quality content and consequently consumers’ increasing willingness to spend more on high performance TVs.”