LG HelloVision Reports Operating Profit of 53.8 Billion KRW Last Year, Up 21% YoY

[Asia Economy Reporter Oh Su-yeon] LG HelloVision announced on the 26th that it recorded annual operating revenue (sales) of 1.1679 trillion KRW and operating profit of 53.8 billion KRW for 2022 based on consolidated financial statements.

For the fourth quarter, sales were 282.5 billion KRW and operating profit was 9.8 billion KRW.

LG HelloVision building. [Photo by LG HelloVision]

Annual sales increased by 8.1% and operating profit rose by 20.9% compared to the previous year. This reflects the recovery of competitiveness in the home business through internet quality improvement, growth of the rental direct mall, and B2B business achievements such as sales of educational smart devices.

Fourth-quarter sales decreased by 0.5% year-on-year and 13.3% quarter-on-quarter. Operating profit fell by 22.8% year-on-year and 45.3% quarter-on-quarter. LG HelloVision explained that this was due to the base effect of educational smart device sales and other one-time income reflected in the third quarter.

By segment, fourth-quarter home revenue reached 170 billion KRW (TV 136 billion KRW, internet 31 billion KRW, internet phone 3.1 billion KRW), and MVNO revenue was 42.1 billion KRW (service revenue 38 billion KRW, device revenue 4.2 billion KRW).

Other revenues, including media, rental, and B2B, recorded 70.4 billion KRW.

Due to goodwill impairment, the fourth-quarter net loss was 55.9 billion KRW, and the annual net loss was 26 billion KRW. Goodwill impairment occurred due to issues such as interest rate hikes caused by rising inflation. Goodwill impairment is a non-cash book value reduction and does not affect operating profit or cash flow.

LG HelloVision evaluated that in the home segment, qualitative subscriber improvement was achieved based on strengthening HelloTV product competitiveness through giga internet quality improvement and user interface (UI) and user experience (UX) redesign. They plan to further accelerate non-face-to-face customer experience innovation through digital channels.

MVNO subscriber net increase also continued. With the launch of Motorola’s premium 5G mid-range phone lineup and the spread of the ‘unlocked + MVNO’ trend, the MZ generation (Millennials and Generation Z) response has increased, and the company aims to secure competitiveness by strengthening eSIM services in the future.

In the media segment, the viewer base expanded due to the success of original content on regional channels, and efforts to revitalize regional channel commerce further strengthened the role of cable TV in coexisting with local communities. Meanwhile, Hello Rental is gaining popularity among the 30s and 40s age group by focusing on a trendy high-end home appliance lineup favored by consumers and a direct mall convenience service that allows self-rental in one minute.

Lee Min-hyung, Executive Director (CFO) of LG HelloVision, said, “Last year was a year in which we laid the foundation for qualitative growth by simultaneously improving operating revenue and operating profit based on overall business structural improvements,” adding, “In 2023, we will accelerate customer experience innovation to expand high-quality subscribers and actively foster regional channel commerce and region-specific businesses to secure future growth momentum.”