LG HelloVision Q3 Operating Profit 3.3 Billion KRW... Down 63.7% YoY

LG HelloVision Q3 Earnings Announcement... Revenue 323.3 Billion KRW
Operating Profit Significantly Decreased Due to Broadcasting and Telecommunications Market Slump

LG HelloVision announced on the 8th through a preliminary business performance disclosure that it recorded sales of 323.3 billion KRW, operating profit of 3.3 billion KRW, and net profit of 2.2 billion KRW in the third quarter.

Third-quarter sales increased by 12% year-on-year as the education office device distribution project and rental services grew. However, operating profit decreased by 63.7% compared to the same period last year due to the stagnation in the broadcasting and telecommunications markets.

Sales by segment were 127.5 billion KRW for broadcasting, 33.9 billion KRW for telecommunications, and 39.5 billion KRW for the MVNO (Mobile Virtual Network Operator) business.

Region-based businesses, including media and business-to-business (B2B) transactions, recorded 53.7 billion KRW, and rental services recorded 33.2 billion KRW. Other businesses, such as educational smart devices, increased to 35.4 billion KRW.

Subscribers in the third quarter showed growth across all business segments. In the broadcasting and telecommunications sector, the direct mall was reorganized focusing on the internet, maintaining a net increase in internet subscribers. In the MVNO sector, convenience store USIM distribution was expanded, and a reasonable USIM rate plan aligned with new device launches was introduced, contributing to the spread of the 'self-supply + MVNO' trend.

Growth in new businesses significantly drove sales growth. In the rental sector, sales of seasonal home appliances such as air conditioners and dehumidifiers increased. With the reflection of revenue from the seasonal market and smart devices, the potential for region-centered growth as a 'local creator' was also confirmed.

The media business is focusing on original content production after acquiring the The Life channel. Original programs for The Life channel such as 'MAKE Minam', 'Salrebrity', and 'Cheonhajeil in Health' were produced.

Lee Min-hyung, Executive Director (CFO) of LG HelloVision, said, "In the third quarter, we showed results in the home business based on subscribers, and operating revenue increased due to growth in new businesses such as rental and education, but profitability deteriorated due to the impact of home shopping and new businesses. We will focus on securing profitability through management efficiency during the remaining period."