LG Electronics’ TV business returned to profitability in the first quarter, thanks to the recovery of demand in Europe and the increasing popularity of streaming services. The South Korean electronic maker reported 21 trillion won in revenue and 1.33 trillion won in operating profit for the quarter from January to March. Although operating profit slightly dropped from the previous year, it was noted that this was amidst a global economic slowdown.
Home appliances sales were a major contributor to profit with 940.3 billion won and a margin rate of 10.9%, marking a significant double-digit rate for sales of refrigerators and washing machines. TV sales also made a contribution of 132.2 billion won, which marked a return to profitability for the business unit that had suffered from low consumer demand in the previous year.
LG attributed the return to profitability to its webOS platform on TVs, which offered access to popular streaming services such as Netflix and Disney+. The company expects TV demand to keep recovering throughout the year, with anticipated high sales of OLED and QNED TVs as well as premium gaming monitors. The increase in revenue was also tied to the success of its new 2024 model TVs launched in the market earlier this year.
In summary, LG Electronics’ TV business has bounced back thanks to various factors such as increased demand in Europe and rising popularity of streaming services. Home appliances sales have also played a significant role in boosting profits, while TV sales have returned to profitability after suffering from low consumer demand last year.
LG expects continued growth in the TV market due to high-end products such as OLED and QNED TVs, premium gaming monitors and webOS platform on TVs which offer access to popular streaming services like Netflix and Disney+. Additionally, LG attributes its return to profitability is due largely due its successful launches of its new 2024 model TVs in the market earlier this year.
Overall, LG’s strong financial performance is an indication that consumers are increasingly turning towards high-end electronics that offer convenience, entertainment and productivity benefits – making it an attractive investment opportunity for those looking for long term growth potential within the industry.