LG Display Posts KRW 250.6 Billion Q3 Operating Profit, Rebounds on Strong OLED Performance

Revenue of KRW 6.277 trillion and net income of KRW 755.6 billion
Expanded share of high-value-added products amid LCD shipment cuts
Completed development of next-generation patterning technology "FLIPP"

LG Display successfully rebounded in the third quarter of this year, driven by the OLED product lineup entering its peak season.

LG Display disclosed on October 22 that it recorded revenue of KRW 6.277 trillion and operating profit of KRW 250.6 billion in the third quarter of this year.

Third-quarter revenue increased 12% from the previous quarter, as shipments of panels for smartphones and TVs rose during the peak fall season. However, revenue was down 10% from the same period a year earlier, as the company reduced shipments of medium-sized liquid crystal display (LCD) panels to improve profitability.

Operating profit returned to the black from an operating loss of KRW 107.7 billion in the previous quarter. This was driven by increased supplies of high-value-added products, primarily OLEDs, along with continued company-wide efforts to improve operational efficiency. However, operating profit fell 42% from the same period a year earlier, affected by the decline in the won-dollar exchange rate and chipflation resulting from higher semiconductor component prices.

Earnings before interest, taxes, depreciation and amortization (EBITDA) came to KRW 1.2144 trillion. This is an indicator of a company's ability to generate cash through its operating activities, calculated before deducting interest expenses, corporate taxes and depreciation and amortization. The EBITDA margin was around 19%. Net income for the period totaled KRW 755.6 billion. Foreign currency translation gains were reflected substantially due to changes in the exchange rate at the end of the period.

LG Display plans to continue upgrading its business with a focus on OLEDs. In its small- and medium-sized display business, the company will build its position in the high-end market, drawing on the mobile division's stable supply capabilities. In its information technology (IT) panel business, it will improve profitability by expanding the share of high-value-added products and improving its cost structure. In its large-sized display business, the company will target customer demand by diversifying product prices while maintaining its competitiveness in premium TV panels. It also plans to expand its gaming monitor lineup to strengthen its market position.

In technology innovation, the company has successfully developed FLIPP, a next-generation patterning technology. The process removes the fine metal mask (FMM), a metal plate used to manufacture conventional red, green and blue (RGB) OLED panels, and forms pixels using photolithography. It can improve the aperture ratio—the proportion of the area that emits light—by around 20 percentage points compared with the existing FMM-based method. The company said that, under the same conditions, this could increase brightness by 1.6 times or extend the panel's lifespan by 2.4 times, while reducing power consumption by 13%.

Kim Seonghyun, chief financial officer (CFO) of LG Display, said, "In the third quarter, amid continued uncertainty in the external business environment, including exchange rate and component price fluctuations, we focused on strengthening our business competitiveness and improving operational efficiency. We will continue to pursue differentiated technological competitiveness and cost innovation to enhance our ability to respond to changes in the external environment and further strengthen the foundation for stable profit generation."

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