SEOUL: LG Display reported today unaudited earnings results based on consolidated K-IFRS (International Financial Reporting Standards) for the three-month period ending September 30, 2016. Revenues in the third quarter of 2016 increased by 15% to KRW 6,724 billion from KRW 5,855 billion in the second quarter of 2016 and decreased by 6% from KRW 7,158 billion in the third quarter of 2015. Operating profit in the third quarter of 2016 recorded KRW 323 billion, a quarter-on-quarter increase of 634% from the operating profit of KRW 44 billion in the second quarter of 2016, and a year-on-year decrease of 3% from the operating profit of KRW 333 billion in the third quarter of 2015.
EBITDA in the third quarter of 2016 was KRW 1,024 billion, compared with EBITDA of KRW 833 billion in the second quarter of 2016 and with EBITDA of KRW 1,178 billion in the third quarter of 2015. Net income in the third quarter of 2016 amounted to KRW 190 billion, compared with the net loss of KRW 84 billion in the second quarter of 2016, and a year-on-year decrease from the net income of KRW 199 billion in the third quarter of 2015.
LG Display recorded its eighteenth straight quarterly operating profit at KRW 323 billion, which resulted from a differentiated strategy in technologies and products despite fierce competition among display manufacturers and a downwards trend in the exchange rate. Under the growing trends for large-size panels as well as the rise in panel prices, LG Display increased revenues by 15% and operating profit by 634% quarter-on-quarter respectively by expanding the portion of differentiated and high value-added products such as Ultra HD and IPS panels to proactively meet market demands. Panels for TVs accounted for 39% of the revenue in the third quarter of 2016, tablets and notebook PCs for 18%, mobile devices for 27%, and desktop monitors for 16%.
With 92% in the liability-to-equity ratio, 139% in the current ratio, and 19% in the net debt-to-equity ratio as of September 30, 2016, the financial structure of the company remains stable. “The upwards trend of panel prices is expected to continue in the fourth quarter due to the growing trends towards large-size panels,” said Don Kim, CFO of LG Display. “In addition, profits in the fourth quarter are anticipated to further improve significantly, especially with the expected increase in prices for 40-inch and above-size panels, which LG Display has a higher portion of.” He also added, “LG Display will maximize profitability with its differentiated technologies such as Ultra HD and IPS. As for OLED TVs, in which the company is aggressively putting efforts into improving productivity and reducing costs, we will improve profits by firmly establishing the premium TV market and by continuing efforts for expanding and diversifying customer base.”
