SEOUL, Korea (Jan. 24, 2024) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending December 31, 2023.
◆ Revenues in the fourth quarter of 2023 increased by 55% to KRW 7,396 billion from KRW 4,785 billion in the third quarter of 2023 and increased by 1% from KRW 7,302 billion in the fourth quarter of 2022.
◆ Operating profit in the fourth quarter of 2023 recorded KRW 132 billion. This compares with the operating loss of KRW 662 billion in the third quarter of 2023 and with the operating loss of KRW 876 billion in the fourth quarter of 2022.
◆ EBITDA profit in the fourth quarter of 2023 was KRW 1,272 billion, compared with EBITDA profit of KRW 382 billion in the third quarter of 2023 and with EBITDA profit of KRW 209 billion in the fourth quarter of 2022.
◆ Net income in the fourth quarter of 2023 was KRW 51 billion, compared with the net loss of KRW 775 billion in the third quarter of 2023 and with the net loss of KRW 2,094 billion in the fourth quarter of 2022.
LG Display recorded KRW 7.396 trillion in revenues and KRW 132 billion in operating profit in the fourth quarter of 2023.
This 55% quarter-on-quarter revenue increase was driven by the rise in panel shipments for OLED mobile devices, TVs, and IT products in response to seasonal demand.
LG Display successfully achieved a turnaround and has returned to profitability for the first time in seven quarters thanks to the improved profitability spurred on by the expansion of high-value-added products centered on OLED, as the results of the advancement of the business structure became visible. This increase was also driven by the company’s continued pursuit of intensive cost reduction activities, such as efforts in cost innovation and enhancing operational efficiency.
Panels for TVs accounted for 18% of revenues in the fourth quarter. Panels for IT devices, including monitors, laptops, and tablet PCs, accounted for 31%, while panels for mobiles and other devices accounted for 44% and panels for automobiles accounted for 7%. All in all, OLED’s overall revenue contribution rose to 57%.
LG Display plans to focus its capabilities on substantially strengthening its competitiveness and business base in all areas of its OLED business sectors, including large-sized panels as well as panels for IT, mobile devices, and automobiles. The company will also focus on securing a stable profit structure and creating customer value.
In the large-sized OLED business, LG Display will strengthen its customer base to expand shipments and enhance business competitiveness through cost innovations in yield, productivity, and materials. Meanwhile, it also plans to further improve profitability by reinforcing its position in the premium TV market by applying its groundbreaking “META Technology 2.0” to large-sized and ultra-large-sized OLED TV panels. This new technology significantly enhances key aspects of image quality such as luminance.
For the small- and mid-sized OLED business, the company will make full-fledged efforts to expand its order-based business and strengthen competitiveness. LG Display also aims to develop a seamless production and supply system of OLED panels for IT devices featuring Tandem technology, which offers enhanced durability and brightness. In addition, the company will steadily expand shipments of OLEDs for mobile devices through its increased production capacity.
In the automotive display business, LG Display plans to solidify its number one position in the global market by expanding its customer base, securing more orders, and facilitating revenue growth by leveraging its differentiated products and technological competitiveness, including Tandem technology-based P-OLED, Advanced Thin OLED (ATO) and high-end LTPS LCD. LG Display has already secured ten premium global automakers within just four years of initiating the mass production of its automotive displays in 2019.
“Although market volatility will continue this year due to prolonged unstable macroeconomic conditions, we will focus on creating customer value and securing profitability by strengthening the competitiveness of our OLED businesses and future growth bases. We will also continue to secure preemptive funds, carry out enterprise-wide cost innovation activities, and strive to achieve operational efficiency in order to secure financial soundness and further enhance business stability, which will lead to improved performance compared to last year,” said Sung-hyun Kim, CFO and Executive Vice President at LG Display.
