LG Display experienced a decrease in panel shipments and revenues in Q1’23 due to low seasonality, shrinking industry demand for TV and IT products, and the company’s efforts to downsize its LCD TV panel business. In terms of revenue composition in Q1’23, panels for TVs accounted for 19%, IT devices (monitors, laptops, and tablets) for 38%, mobile and other devices for 32%, and automobiles for 11%.
|Financial Metrics||Q1’23 (KRW)||Q1’23 (USD)||Q4’22 (KRW)||Q1’22 (KRW)|
|Revenues||4,411 billion||3.31 billion||7,302 billion||6,471 billion|
|Operating Loss||1,098 billion||823.5 million||876 billion||38 billion|
|EBITDA Loss (Profit)||80 billion||60 million||209 billion||1,211 billion|
|Net Loss (Income)||1,153 billion||864.75 million||2,094 billion||54 billion|
The company plans to focus on advancing its market-to-order business, which currently accounts for over 40% of its revenue. LG Display aims to increase the revenue share of this business model to over 70% within the next two to three years. To achieve this, the company intends to solidify its global leadership in the automotive display sector by increasing orders and revenues and expanding high value-added panel shipments for mobile devices.
LG Display is also investing in its mid-sized OLED business, including tablet PCs, and plans to establish a solid mass production and supply system by 2024. The company will concentrate on high value-added areas for its supply and demand-based business, strengthening its position in the premium TV market by expanding its OLED product lineup and focusing on innovations in cost structure. Additionally, LG Display will accelerate its market-creating business with high growth potential, such as Transparent and Gaming OLED panels.
|Mobile & Other Devices||32%|
The company expects panel demand to fall short of set sales due to anticipated prolonged sluggish demand. However, the company plans to achieve a turnaround in the second half of the year as the industry recovers its inventory level and soundness, which should lead to increased panel demand and an expansion of the market-to-order business.