LG HelloVision reported declines in both revenue and operating profit for the first quarter of this year, impacted by a stagnant pay TV market and a reduction in its educational smart device business. However, the company achieved a return to profitability compared to the previous quarter due to the resolution of one-time costs related to voluntary retirements.
In a preliminary earnings report released on May 7, LG HelloVision announced consolidated revenue of 255.4 billion won, operating profit of 5.1 billion won, and net profit of 3 billion won for the first quarter. Revenue fell by 18.5% and operating profit decreased by 28.4% compared to the same period last year.
The revenue decline reflects the contraction in the educational smart device sector and a slowdown in the pay TV industry. Adjustments to the portfolio as part of a focused strategy in regional businesses also contributed to the drop.
Operating profit improved by 13 billion won from the previous quarter, marking a return to profitability. This was largely due to the elimination of one-time costs associated with voluntary retirements recorded in the fourth quarter of last year.
By business segment, broadcasting revenue was 120.2 billion won, internet revenue was 33.8 billion won, and mobile virtual network operator (MVNO) revenue was 36.8 billion won. The rental business generated 40.9 billion won, while regional businesses, including media and B2B transactions, accounted for 22.5 billion won.
Broadcasting and MVNO revenues fell by 2.1% and 5.4%, respectively, year-on-year. The broadcasting segment saw slight declines due to reduced video-on-demand (VOD) sales, although targeted products like technology-neutral offerings and student-specific plans helped maintain subscriber competitiveness. The MVNO segment faced revenue drops due to intensified competition among telecom companies offering low-cost plans.
Conversely, the rental segment experienced a 27.2% increase in revenue to 40.9 billion won, driven by rising demand for popular products among younger consumers, such as robot vacuums and LG's StandbyME.
Regional businesses recorded a revenue decline of 45.3% to 22.5 billion won due to portfolio adjustments.
Kim Young-jun, CFO and CRO of LG HelloVision, stated, "Despite stagnation in the pay TV market, we focused on operational efficiency and business stabilization. We aim to secure a sustainable growth foundation through improved profitability and solid operations."
Last year, LG HelloVision reported consolidated revenue of 1.2657 trillion won and operating profit of 18.7 billion won, marking increases of 5.8% and 39.0%, respectively. However, in the fourth quarter, the company recorded revenue of 299.5 billion won and an operating loss of 7.9 billion won, attributed to one-time costs related to voluntary retirements.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.