SEOUL, Korea (Jul. 26, 2023) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2023.
◆ Revenues in the second quarter of 2023 increased by 7% to KRW 4,739 billion from KRW 4,411 billion in the first quarter of 2023 and decreased by 15% from KRW 5,607 billion in the second quarter of 2022.
◆ Operating loss in the second quarter of 2023 recorded KRW 881 billion. This compares with the operating loss of KRW 1,098 billion in the first quarter of 2023 and with the operating loss of KRW 488 billion in the second quarter of 2022.
◆ EBITDA profit in the second quarter of 2023 was 130 KRW billion, compared with EBITDA loss of KRW 80 billion in the first quarter of 2023 and with EBITDA profit of KRW 662 billion in the second quarter of 2022.
◆ Net loss in the second quarter of 2023 was 699 KRW billion, compared with the net loss of KRW 1,153 billion in the first quarter of 2023 and with the net loss of KRW 382 billion in the second quarter of 2022.
LG Display recorded KRW 4.739 trillion in revenues and KRW 881 billion in operating loss in the second quarter of 2023.
LG Display witnessed reduced panel inventory levels across the industry’s overall ecosystem as inventory adjustments have continued in downstream industries, particularly focusing on TV and IT products, since last year. The company saw increased second-quarter demand for and shipments of mid- and large-sized panels, including for OLED TVs. As a result, area base panel shipments and revenues in the second quarter rose by 11% and 7%, respectively, compared with the first quarter.
LG Display’s performance improved in the second quarter compared with the previous quarter due to increased revenues and the company’s continuous efforts to reduce costs by innovating its cost structure, strengthening inventory management, and improving operational efficiency.
Panels for TVs accounted for 24% of revenues in the second quarter, while panels for IT devices including monitors, laptops, and tablet PCs accounted for 42%, panels for mobile and other devices accounted for 23%, and panels for automobiles accounted for 11%.
LG Display will make all-out efforts to advance its business structure centered on its market-to-order business and plans to expand the proportion of its OLED businesses.
With respect to the company’s market-to-order business, which has maintained stable shipments and prices based on close partnerships with customers, LG Display plans to expand its share of total revenues from 40% to over 50% next year and over 70% within the next two to three years.
In its large-sized and small- and mid-sized businesses, the company will raise the proportion of OLED panels while strengthening competitiveness. Through this strategy, LG Display’s overall OLED revenue is expected to exceed 50% of its total revenues this year.
For its small- and mid-sized OLED businesses, LG Display will make full-fledged efforts to expand shipments of mobile devices by leveraging its increased production capacity. In addition, it is preparing for a robust mass production and supply system in 2024 based on its technological leadership in the IT OLED market.
In relation to its automotive display business, the company will further strengthen its position as a leading force in the market based on its differentiated technological competitiveness, which encompasses Tandem OLED and high-end LCDs, while focusing on expanding its revenue and securing more orders.
Regarding its large-sized OLED business, LG Display is strengthening its premium TV market position by capitalizing on OLED’s fundamental competitiveness. Furthermore, the company will actively pursue emerging markets such as the Gaming OLED and Transparent OLED sectors.
“Inventory adjustments that have continued in downstream industries since last year are believed to have made appreciable progress in the first half of the year. We anticipate a rise in demand for panels, driven by the recovery and soundness of inventory levels across the industry’s overall ecosystem, and expect to achieve a turnaround in profit in the fourth quarter owing to the expansion of our market-to-order business, including increased panel shipments for mobile products,” said Sung-hyun Kim, CFO and Senior Vice President at LG Display.
Kim added, “Although macroeconomic uncertainties still run high, we will make every effort to accelerate the advancement of our business structure and enhance our business performance while improving financial soundness.”
