LG Display Reports Q1 2019 Results

LG Display 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 ($5.1 billion) from the first quarter of 2018 and decreased by 15% from the fourth quarter of 2018.
 
Operating loss in the first quarter of 2019 recorded KRW 132 billion ($114 million). 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 ($590 million), 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.
 
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.
 
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 more than 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 SVP of LG Display.