In the first quarter, LG Electronics’ TV business saw a significant turnaround thanks to the recovery of demand in Europe and the growing 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 due to global economic slowdown.
The increase in revenue was also tied to the success of the launches of its new 2024 model TVs in the market. Home appliances sales were a major contributor to profit with 940.3 billion won and a margin rate of 10.9%, a significant double-digit rate for sales of refrigerators and washing machines. TV sales also made a contribution of 132.2 billion won, marking 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 streaming service and content available on its webOS platform on TVs. The company expects TV demand to continue recovering throughout the year, with anticipated high sales of OLED and QNED TVs as well as premium gaming monitors. The popularity of streaming services has been one of LG’s biggest drivers, providing an additional source of revenue beyond traditional TV sales.
