LG Display Reports Second Quarter 2021 Results

LG Display reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2021.

Revenues in the second quarter of 2021 increased by 31% to KRW 6,966 billion ($5.1 billion) from KRW 5,307 billion ($3.88 billion) in the second quarter of 2020 and increased by 1% from KRW 6,883 billion ($5.03 billion) in the first quarter of 2021.

Operating profit in the second quarter of 2021 recorded KRW 701 billion. This compares with the operating loss of KRW 517 billion ($378 million) in the second quarter of 2020 and with the operating profit of KRW 523 billion ($382 million) in the first quarter of 2021.

EBITDA in the second quarter of 2021 was KRW 1,770 billion ($1.29 billion), compared with EBITDA of KRW 413 billion ($302 million) in the second quarter of 2020 and with EBITDA of KRW 1,620 billion ($1.18 billion) in the first quarter of 2021.

LG Display recorded an all-time high second quarter revenues due to the high sales in TV displays including OLED, the solid performance in IT products, and the increase in LCD panel prices.

The company saw a year-on-year increase of 31% in revenues as well as a turnaround to operating profit year-on-year, while recording a quarter-on-quarter increase of 1% in revenues and 34% in operating profit. The company’s operating margin recorded 10% in the second quarter, reaching a double-digit percentage for the first time in 16 quarters.

LG Display’s OLED TV panel shipments in the first half of this year surpassed 3.5 million units, which accounted for 80% of last year’s annual shipments, putting the company on track to sell 8 million OLED panels within the year.

In the second half of this year, LG Display will continue to seek to increase profit by continuing to strengthen its position within the super large-size TV market and expand its position within the mid-size premium market. At the same time, the company will identify applications where OLED can unleash its distinct inherent value, and develop them into high-margin, high-growth segments.

Through this, the company is expected to rapidly increase its profitability. It aims to turn its large-size OLED business in the black in the second half of this year while pursuing an operating margin in a mid-single-digit range from 2022, and eventually, a double-digit range in the mid to long run.

“We saw a solid performance in the second quarter as a result of the favorable LCD market situation as well as the company’s efforts to improve its OLED business,” said Dong-hee Suh, CFO and SVP of LG Display. “Although the market volatility is expected to remain in the future, we will step up our efforts to improve our OLED business performance and aim to solidify its business operations built through its partnerships with customers to maintain a stable performance in the LCD sector.”