LG HelloVision, 3Q Operating Profit Down 49.6%... "One-time Income Base Effect"

LG HelloVision announced on the 7th that it recorded operating revenue (sales) of 288.7 billion KRW, operating profit of 9.1 billion KRW, and net profit of 7.4 billion KRW on a consolidated basis for the third quarter.

Third-quarter sales decreased by 37.2 billion KRW (11.4%) compared to the same period last year but increased by 2.0 billion KRW (0.7%) compared to the previous quarter. Operating profit decreased by 8.9 billion KRW (49.6%) year-on-year and by 4.9 billion KRW (34.9%) quarter-on-quarter. The decline in operating revenue and operating profit was influenced by the base effect of one-time revenue such as the sale of educational smart devices reflected in the third quarter of last year. For the remainder of the second half, the company plans to secure additional growth opportunities mainly through the regional business-to-business (B2B) sector.

By business segment, home revenue recorded 167.2 billion KRW, and MVNO (Mobile Virtual Network Operator) revenue was 41.0 billion KRW. Other revenues, including media, rental, and B2B, amounted to 80.5 billion KRW.

LG HelloVision continues to maintain growth in cable TV and internet subscribers. Along with improvements in the core service quality experience, the company restructured product competitiveness centered on its direct sales mall to enhance customer benefits, resulting in the full-scale qualitative growth of subscribers focused on UHD and Giga Internet. Additionally, synergy among home-related businesses strengthened sales competitiveness on the ground.

In the MVNO sector, LG HelloVision introduced Motorola’s new foldable phone, the ‘Razr40 Ultra,’ bundled with MVNO LTE, expanding premium device market choices. Furthermore, ahead of the iPhone 15 launch, pre-promotions supported the spread of the ‘unlocked + MVNO’ trend.

Other revenues were driven by growth in the rental business. Hello Rental is accelerating growth by leveraging a diverse lineup of trendy home appliances such as the ‘LG StanbyME Go’ and the convenience of self-rental through its direct sales mall. In the third quarter, demand for seasonal appliances including air conditioners increased, and differentiated competitiveness expanded as pet and cat appliance lineups tailored to pet owners’ needs emerged as popular products.

In the media sector, the regional channel commerce ‘Jecheoljangteo’ is leading to satisfaction among local farmers and consumers. ‘Ttangkkeutmaeul Haenam Kimchi,’ developed with Haenam County, has received a positive response, and repeat purchase rates through ‘Jecheoljangteo’ are on the rise. Investment in original content was also expanded with productions such as ‘Notable Women Season 4,’ co-produced with eight PP companies, and the new variety show ‘Jecheol Nuna.’

Lee Min-hyung, Executive Director (CFO) of LG HelloVision, stated, “Despite the economic slowdown, we maintained growth momentum with continued qualitative growth in broadcasting and internet subscribers in the third quarter.” He added, “In the remaining half of the year, we will focus on innovating customer value by simultaneously improving product competitiveness and sales capabilities, while driving additional growth based on the regional B2B business.”