LG Display Reports 2Q 2024 Results

LG Display reported unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending June 30, 2024.

Revenues in the second quarter of 2024 increased by 28% to KRW 6,708 billion ($4.85 billion) from KRW 5,253 billion ($3.82 billion) in the first quarter of 2024 and rose by 42% from KRW 4,739 billion in the second quarter of 2023.

Operating loss in the second quarter of 2024 was KRW 94 billion ($68 million). This compares with the operating loss of KRW 469 billion ($340 million) in the first quarter of 2024 and with the operating loss of KRW 881 billion in the second quarter of 2023.
EBITDA profit in the second quarter of 2024 was KRW 1,287 billion ($930 millon), compared with EBITDA profit of KRW 810 billion in the first quarter of 2024 and with EBITDA profit of KRW 130 billion in the second quarter of 2023.

Revenues increased 28% quarter-on-quarter and 42% year-on-year, growing in all areas of its business, including TV, IT, mobile, and automotive displays. In particular, the proportion of OLED products rose by 10% year-on-year to make up 52% of revenues.

Profitability improved significantly through the achievement of an advanced business structure, including the start of full-scale mass production of OLED panels for IT products, the expansion of large-sized OLED panel production, and the impact of favorable exchange rates.

Panels for TVs accounted for 24% of revenues in the second quarter. Panels for IT devices, including monitors, laptops, and tablet PCs, accounted for 44%, while panels for mobiles and other devices accounted for 23%, and panels for automobiles accounted for 9%.

LG Display plans to focus its capabilities on securing a stable profit structure and create differentiated customer value by continuing to advance its business structure in order to strengthen its OLED-oriented business competitiveness and expand the proportion of its high value-added products, as well as increasing the company’s responsiveness to market conditions through operational efficiency.

Regarding its large-sized OLED business, LG Display is aiming to further strengthen its position in the premium TV market by expanding its differentiated and high-end product lineups based on close collaboration with customers as well as securing profitability through product competitiveness and cost innovation.

In the small- and mid-sized OLED business, the company plans to increase its share in the high-end market by expanding panel shipments compared to the previous year based on the active utilization of its enhanced capability and capacity to produce OLED panels for mobile devices. In regard to OLED panels for IT devices, it has started stable mass production and smooth shipments of Tandem OLED for IT products.

As for the automotive display business, LG Display seeks to strengthen its position as the world’s leading player in the market by continuously expanding its orders and customer base. The company is aiming to achieve this by using its differentiated products and technologies such as Tandem technology-based P-OLED, Advanced Thin OLED (ATO), and high-end LTPS LCDs, as well as leveraging solid customer relationships.

Regarding its LCD business for IT products, the company will continue to enhance profitability by focusing on high-end products such as those featuring low power consumption along with differentiated design and picture quality.

“We are improving our performance and solidifying our financial stability year-on-year through the advancement of our business structure, cost structure improvement, cost innovation, and operational optimization activities,” said Sung-hyun Kim, CFO and EVP of LG Display. “Although we expect ongoing uncertainty and volatility in the market and external environment in the second half of the year, we will continue to expand our business structure advancement and to improve our performance through operational efficiency.”