LG HelloVision Posts Q2 Operating Profit of 3 Billion Won, Down 72% Year-on-Year

Contraction in Educational Smart Device Distribution and Sluggish Broadcasting & Telecom Markets
Efforts to Enhance Management Efficiency and Restore Profitability in the Second Half

On August 6, LG HelloVision announced its preliminary consolidated results for the second quarter of this year, reporting sales of 243.3 billion won, operating profit of 3 billion won, and net profit of 1.1 billion won.

Provided by LG HelloVision

Sales declined by 13.13% year-on-year, mainly due to the contraction of the educational smart device distribution business and persistent challenges in the broadcasting and telecommunications markets. During the same period, operating profit also decreased by 71.7%.

By business segment, sales amounted to 119.8 billion won in broadcasting, 33.5 billion won in internet, 36.8 billion won in MVNO (budget mobile), and 30.8 billion won in rentals. The region-based business, including media and business-to-business (B2B) segments, posted sales of 21.9 billion won.

Among these, sales from broadcasting and MVNO services decreased by 2.7% and 9.9% year-on-year, respectively. The decline in broadcasting sales was mainly attributed to lower video-on-demand (VOD) sales, while intensified competition for low-priced plans was cited as the key reason for the drop in MVNO performance. The rental business also dropped by 31.7% compared to the same period last year due to intensified seasonal competition in the home appliance market, and sales from the region-based business fell as a result of ongoing adjustments to its business portfolio.

LG HelloVision is introducing genre-based monthly subscription VOD services, as well as bundle MVNO plans with insurance and coupon packs, to maintain its subscriber competitiveness. The company stated that it plans to continue expanding customer choice.

Youngjun Kim, Chief Financial Officer (CFO) of LG HelloVision, said, "In the second half of the year, we will continue to drive management efficiency to lay the foundation for regaining competitiveness and profitability."

This content was produced with the assistance of AI translation services.