LG Electronics’ TV business has made a strong comeback 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. Despite a slight drop in operating profit compared to the previous year, this was noted amidst a global economic slowdown.
One of the major contributors to LG’s profit was home appliances sales, with 940.3 billion won and a margin rate of 10.9%, which marked 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 its 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 that were launched in the market.
Overall, LG Electronics’ strong performance in the first quarter is an encouraging sign for investors looking forward to further growth opportunities ahead.