LG Display Q3 Loss Narrows to $58M as OLED Revenue Surges 43%

Seoul, South Korea - LG Display (034220. KS) reported a narrower third-quarter operating loss as its strategic shift to OLED technology boosted sales. 

However, one-off restructuring costs continued to weigh on profitability.

The world's largest manufacturer of OLED display panels posted an operating loss of KRW 81 billion (US$58.3 million) for the July-September quarter, compared with a loss of KRW 662 billion (US$476.7 million) a year earlier and a loss of KRW 94 billion (US$67.7 million) in the previous quarter.

Revenue rose 43% year-on-year to KRW 6,821 billion (US$4,912.4 million), driven by increased shipments of mobile device panels and higher OLED adoption. 

The company reported a net loss of KRW 338 billion (US$243.4 million), improving from a loss of KRW 775 billion (US$558.1 million) in the same period last year.

OLED panels accounted for 58% of total revenue in the third quarter, up 16 percentage points from a year earlier, reflecting the company's push toward premium display technology.

The company's product mix showed panels for IT devices, including monitors and laptops, comprising 33% of revenue, while mobile and other devices accounted for 36%. 

TV panels made up 23%, with automotive displays contributing 8%.

"We are continually improving our performance by focusing our enterprise-wide capabilities on advancing our business structure," said CFO Sung-hyun Kim, noting that market uncertainty and demand volatility persist.

EBITDA for the quarter was KRW 1,162 billion (US$837.1 million), down from KRW 1,287 billion (US$926.8 million) in the previous quarter but significantly higher than KRW 382 billion (US$275.1 million) a year ago.

The display maker said it plans to strengthen its small- and mid-sized OLED business through stable supply capabilities and technological leadership, particularly in Tandem OLED technology for IT products. 

The company is also expanding its automotive display business, targeting electric and internal combustion engine vehicles with its P-OLED and Advanced Thin OLED technologies.

LG Display's inventory stood at KRW 3,338 billion (US$2,404.6 million) at the end of September, up from KRW 3,082 billion (US$2,220.2 million) in the previous quarter.

(US$1 = KRW 1,388.60)