LG Display said its revenue rose 1 percent to KRW 7,396 billion for the three-month period ended December 31, 2023 from KRW 7,302 billion in the same period of 2022.
LG Display’s operating profit for the fourth quarter of 2023 stood at KRW 132 billion, marking a significant turnaround from the operating loss of KRW 662 billion in the third quarter of 2023 and KRW 876 billion in the fourth quarter of 2022.
LG Display, one of the leading suppliers to Apple, said its EBITDA profit in Q4 2023 reached KRW 1,272 billion, surpassing the EBITDA profit of KRW 382 billion in the third quarter of 2023 and KRW 209 billion in the fourth quarter of 2022.
LG Display’s net income for the fourth quarter of 2023 amounted to KRW 51 billion, a noteworthy improvement from the net loss of KRW 775 billion in the third quarter of 2023 and KRW 2,094 billion in the fourth quarter of 2022.
LG Display’s impressive fourth-quarter results were primarily driven by a 55 percent quarter-on-quarter increase in revenues. This surge was attributed to heightened panel shipments for OLED mobile devices, TVs, and IT products, aligning with seasonal demand.
LG Display has achieved a significant turnaround, marking its return to profitability after seven quarters. This success was attributed to enhanced profitability through the expansion of high-value-added OLED products. The company also cited the positive impact of business structure advancements and ongoing cost reduction activities, including efforts in cost innovation and operational efficiency.
In terms of revenue distribution, panels for TVs accounted for 18 percent, panels for IT devices constituted 31 percent, mobile devices and other devices contributed 44 percent, and panels for automobiles made up 7 percent. Notably, OLED’s overall revenue contribution rose to an impressive 57 percent.
Looking ahead, LG Display outlined its strategic focus on strengthening its competitiveness and business base across all OLED business sectors, including large-sized panels, IT, mobile devices, and automobiles. The company aims to secure a stable profit structure and create customer value.
In the large-sized OLED business, LG Display plans to expand shipments and enhance competitiveness through cost innovations. The application of “META Technology 2.0” to large-sized and ultra-large-sized OLED TV panels is expected to reinforce the company’s position in the premium TV market.
For the small- and mid-sized OLED business, the company aims to expand order-based business, improve competitiveness, and develop a seamless production and supply system for IT devices featuring Tandem technology.
In the automotive display business, LG Display intends to solidify its global market leadership by expanding its customer base, securing more orders, and leveraging differentiated products and technological competitiveness.
“Though market volatility will continue this year due to unstable macroeconomic conditions, we will focus on creating customer value and securing profitability by strengthening the competitiveness of our OLED businesses and future growth bases,” Sung-hyun Kim, CFO and Executive Vice President at LG Display, said in its earnings report.
LG Display is set to contribute to the sales of Apple’s headset Vision Pro, slated to hit the market next month. Analysts foresee there will be an increased supply of liquid crystal display (LCD) panels for Samsung Electronics’ TVs in the coming year.