LG Electronics Turns Around TV Business with Rising Demand and Streaming Services
LG Electronics’ TV business returned to profitability in the first quarter, thanks 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 quarter from January to March. Although operating profit slightly dropped from the previous year, it was noted that this was amidst a global economic slowdown.
The success of its home appliances sales also contributed significantly to LG’s profit, with 940.3 billion won and a margin rate of 10.9%. This was 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 the popularity of its streaming service and content available on its webOS platform on TVs. The company expects TV demand to keep recovering throughout the year, with anticipated high sales of OLED and QNED TVs as well as premium gaming monitors. The increase in revenue was also tied to the success of LG’s new 2024 model TVs in the market.
Overall, LG Electronics’ strong performance in Q1 is a positive sign for its future growth prospects, particularly given current global economic challenges.
In conclusion, LG Electronics has successfully turned around its TV business by leveraging on several factors including demand recovery in Europe and increasing popularity of streaming services among consumers globally. Its home appliances sales were also a major contributor to its profits with significant double-digit rates for sales of refrigerators and washing machines.
Furthermore, LG’s new launches such as 2024 model TVs have been successful in driving up revenue, while it anticipates high sales of OLED and QNED TVs as well as premium gaming monitors throughout this year.
This turnaround is expected to continue into other quarters as LG continues to innovate and expand its offerings while meeting changing consumer demands globally.
In summary, despite global economic challenges, LG Electronics has shown resilience by leveraging on various factors such as streaming services’ popularity and demand recovery abroad while maintaining profitability through home appliance sales. Its strong performance is poised for continued growth prospects into other quarters with new product launches on offer this year.
