In the first quarter, LG Electronics’ TV business returned to profitability due to the recovery of demand in Europe and the increasing 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 months of January to March. This revenue figure is the highest ever recorded for the first quarter, although operating profit did drop slightly from the previous year. Despite a global economic slowdown, LG noted that its home appliances sales were the main source of profit, generating 940.3 billion won with a margin rate of 10.9%, a double-digit rate for sales of refrigerators and washing machines.
TV sales also contributed significantly to the profit, with 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 this turnaround to the recovering demand for TVs in Europe, with a 4.2% increase in revenue fueled by the launch of its new 2024 model TVs. The company credited the popularity of its streaming service and content available on its webOS platform on TVs for the return to profit.
Looking ahead, LG expects TV demand to continue to recover throughout the year, with high sales expected for OLED and QNED TVs as well as premium gaming monitors. The company is optimistic about the future of its TV business and is focusing on innovative products to meet the evolving demands of consumers.