LG's TV business return to profitability from Europe demand recovery, streaming
Image: LG Electronics
LG Electronics' TV business has returned to profitability in the first quarter from the recovery of demand in Europe and the rising popularity of streaming services.
For the entire quarter running from January to March, the South Korean electronic maker recorded 21 trillion won in revenue and 1.33 trillion won in operating profit.
The revenue figure is the highest to date for the first quarter while operating profit dropped slightly from a year earlier it comes amid a global economic slowdown, LG noted.
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Home appliances sales contributed the lion's share of profit with 940.3 billion won and a margin rate of 10.9% -- an impressive double-digit rate for sales of refrigerators and washing machines.
TV sales also contributed 132.2 billion won, a return to profitability from the prior quarter for the business unit that suffered from low consumer demand last year.
LG said TV demand was recovering in Europe and its revenue from the business increased 4.2% on the back of the launches of its new 2024 model TVs.
The return to profit was credited to the popularity of its streaming service and content available on its webOS platform on TVs.
LG expects TV demand to continue to recover throughout the year and expects high sales of OLED and QNED TVs as well as premium gaming monitors.