In a statement issued today, Seoul-based LG Display shared its unaudited earnings figures based on consolidated International Financial Reporting Standards for the three-month period ending September 30, 2017. Despite the continued price erosion of display panels, the company recorded its twenty-second straight quarterly operating profit of KRW (South Korean Won) 586 billion and a 20% EBITDA ratio (earnings before interest, tax, depreciation and amortization).
Another result of significance in today’s report is the company's OLED (organic light emitting diode) performance which appears to be a bright horizon in a relatively flat display market. “Amid the expansion of OLED TVs in the market,” according to the report, "and thanks to increasing production triggered by the high seasonality of mobile devices, the revenue in third quarter of 2017 increased by 5% quarter-on-quarter and by 4% year-on-year. Panels for TVs accounted for 40% of the revenues in the third quarter of 2017; mobile devices for 27%; tablets and notebook PCs for 17%; and desktop monitors for 16%."
Despite the stagnation in the display industry, LG Display has increased OLED TV panel shipments. The company said it is focusing heavily on its OLED business, including its Wallpaper OLED line and Crystal Sound OLED solutions. LG Display also working to strategically distinguish its offerings from the current crop of LCDs (liquid crystal displays).
LG Electronics Business Solutions recently unveiled the world’s largest OLED screen. Located at the Dubai Aquarium, the mega-sized video wall was created using 820 Open Frame LG OLED digital signage panels.
“LG Display plans to focus on investing in OLED products as part of its long-term preparation for the future,” said Don Kim, CFO of LG Display. "We will continue to maximize profitability in our differentiated LCD products, and will improve the profitability of the OLED business through expansion, under the conservative assumption that the challenging market situation will continue.”
Here are other key takeaways from the October 25, 2017 LG Display report:
● Revenues in the third quarter of 2017 increased by 4% to KRW 6,973 billion from KRW 6,724 billion in the third quarter of 2016 and increased by 5% from KRW 6,629 billion in the second quarter of 2017.
● Operating profit in the third quarter of 2017 recorded KRW 586 billion, a year-on-year increase of 81% from the operating profit of KRW 323 billion in the third quarter of 2016 and a quarter-on-quarter decrease of 27% from the operating profit of KRW 804 billion in the second quarter of 2017.
● Net income in the third quarter of 2017 was KRW 477 billion, a year-on-year increase of 152% from the net income of KRW 190 billion in the third quarter of 2016 and a quarter-on-quarter decrease of 35% from the net income of KRW 737 billion in the second quarter of 2017.
**Forward-Looking Statement Disclaimer: The LG Display report contains forward-looking statements. Additional information as to factors that may cause actual results to differ materially from our forward-looking statements can be found in the filings with the United States Securities and Exchange Commission. For more details, visit www.lgdisplay.com.