SEOUL, Korea (Apr. 24, 2019) – LG Display today reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending March 31, 2019.
◆ Revenues in the first quarter of 2019 increased by 4% to KRW 5,879 billion from KRW 5,675 billion in the first quarter of 2018 and decreased by 15% from KRW 6,948 billion in the fourth quarter of 2018.
◆ Operating loss in the first quarter of 2019 recorded KRW 132 billion. This compares with the operating loss of KRW 98 billion in the first quarter of 2018 and the operating profit of KRW 279 billion in the fourth quarter of 2018.
◆ EBITDA in the first quarter of 2019 was KRW 679 billion, compared with EBITDA of KRW 812 billion in the first quarter of 2018 and with EBITDA of KRW 1,134 billion in the fourth quarter of 2018.
◆ Net loss in the first quarter of 2019 was KRW 63 billion, compared with the net loss of KRW 49 billion in the first quarter of 2018, and the net income of KRW 153 billion in the fourth quarter of 2018.
LG Display recorded KRW 5,879 billion in revenues in the first quarter of 2019, a quarter-on-quarter decrease of 15% from KRW 6,948 billion, due to a decrease in shipment from low seasonality and the impact of some tight IT component supply issues.
Despite the stabilization of larger size panel pricing during the first quarter of 2019, the company registered KRW 132 billion in operating loss in the first quarter due to a decline in the average price per square meter. This was due to a result of mix impact driven by shipment decrease of small- and mid-sized panels which have relatively higher pricing per square meter.
Panels for TVs accounted for 36% of the revenue in the first quarter of 2019, mobile devices for 25%, tablets and notebook PCs for 22%, and desktop monitors for 17%. Notably, the IT Business Unit of LG Display, which is in charge of panels for monitors, notebook PCs and tablet PCs, generated 39% of the total revenues in the first quarter, surpassing the revenue portion of the TV Business Unit.
LG Display recorded 131% in the liability-to-equity ratio, 98% in the current ratio, and 54% in the net debt-to-equity ratio as of March 31, 2019. The slightly increased ratios of liability-to-equity and net debt-to-equity compared with the previous quarter were mainly due to the company’s mid- to long-term investment into its shift towards a more OLED-focused business structure.
The company will continue to step up its efforts to shift towards a more OLED-focused business structure despite the operating loss in the first quarter. LG Display is the only company in the world that can manufacture OLED panels for the TV, mobile and automotive sectors. In its large-sized OLED panel business in particular, the company reached a break-even point in the second half of last year, and the business accounted for over 20% of total TV panel revenues in 2018. For 2019 it is expected to reach over 30%.
In addition, given that LG Display is making efforts to find opportunities to use OLED panels for various applications such as Automotive, based on the technology’s differentiated advantages, the company’s OLED business is expected to contribute further to profitability.
“We will continue our efforts this year to overcome the challenges that lie ahead as we shift towards a more OLED-focused business structure. We believe that we are on track to build a firm foundation for an OLED-focused business portfolio for future growth, and expect to show solid performance starting from next year,” said Dong-hee Suh, CFO and Senior Vice President of LG Display.
