LG HelloVision Reports 12% Drop in Operating Profit Last Year... Decline in VOD Sales

2023 Annual and Q4 Earnings Announcement
Last Year Sales 1.2 Trillion KRW · Operating Profit 47.4 Billion KRW

LG HelloVision's operating profit last year recorded 47.4 billion KRW, a 12% decrease compared to the previous year.

On the 7th, LG HelloVision announced that last year's sales increased by 1.9% from the previous year to 1.1903 trillion KRW, while operating profit decreased by 12% to 47.4 billion KRW.

Although sales increased through media and rental·B2B businesses, operating profit declined due to a decrease in VOD sales and the pursuit of new business ventures.

In the fourth quarter of last year, sales reached 337.3 billion KRW, and operating profit was 12.7 billion KRW, representing increases of 19.4% and 29.2% respectively compared to the same period last year.

Regarding this, LG HelloVision stated, "This result reflects other income from the expansion of B2B (business-to-business) operations such as sales of educational smart devices and electric vehicle charger sales."

LG HelloVision also reported an annual net loss of 45.4 billion KRW due to goodwill impairment. The impairment occurred amid the global continuation of high interest rates and the domestic paid broadcasting industry's circumstances. Goodwill impairment is a non-cash accounting write-down and does not affect future operating profit or cash flow.

Going forward, the company plans to accelerate solid growth in existing businesses and diversify its operations. Lee Min-hyung, LG HelloVision Executive Director (CFO/CRO), said, "As a result of listening to customer feedback last year, we confirmed qualitative growth in existing businesses and growth potential in new businesses," adding, "In 2024, we will focus on continuous core business growth and concretizing growth models for new regional businesses."