Mesmerizing CES Spectators With ‘Horizon’ Installation at CES 2023
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By News Reporter
Highest Annual Revenue in History With Home Appliance and
Vehicle Components Showing Growth for Eight Consecutive Years
SEOUL, Jan. 25, 2024 — LG Electronics Inc. (LG) announced its financial results for the year 2023, disclosing a consolidated revenue of KRW 84.2 trillion and an operating profit of KRW 3.55 trillion. This marks the third consecutive year of achieving record-breaking annual revenue. The operating profit is also solid, approaching levels seen during the prior period of pent-up demand.
Despite challenging external factors such as an economic slowdown and reduced demand, LG’s core business of home appliances and the burgeoning vehicle components business have demonstrated remarkable resilience, maintaining continuous growth for eight consecutive years. The combined revenue of these businesses exceeded KRW 40 trillion last year, a substantial increase from KRW 18 trillion in 2015. Over the same period, the proportion of these two businesses in the total revenue has risen from 32.5 percent to 47.8 percent.
The performance is attributable to LG’s strategic efforts to enhance its business portfolio. The company successfully expanded its B2B business by identifying market turning points early on and integrated new business models, including subscription services, into existing frameworks. Furthermore, LG’s innovative content and service business model, leveraging its extensive user base of hundreds of millions of products globally, has also contributed to securing robust profitability.
Looking ahead, LG is committed to a continual transformation from a mature business-oriented structure to a future growth-oriented one. In this year, the company will concentrate its capabilities on breaking through limits to maximize its business potential. Guided by the newly established Overseas Sales & Marketing Company, LG will strive for additional growth and expanded product coverage, particularly in emerging markets where there are greater growth opportunities.
The LG Home Appliance & Air Solution Company achieved an annual revenue of KRW 30.14 trillion, marking eight consecutive years of growth and ushering in the era of KRW 30 trillion. Introducing new business models including subscription services and expanding the B2B share in areas such as HVAC, components and built-in solutions contributed to this growth. The operating profit recorded an increase of over 76 percent compared to the previous year, reaching KRW 2.08 trillion.
In the coming year, the Company will accelerate a shift in its business model towards future readiness, including Direct-to-Consumer initiatives. It aims to expand the deployment of home appliance operating systems and extend subscription services to international markets. Additionally, there will be a swift progression in building smart home solutions that reflect the value of “Zero Labor Home.” In terms of products, the Company will seek to maintain its strategic approach of solidifying the premium leadership of key products, such as washing machines and refrigerators, while swiftly expanding region-specific lineups. To sustain continuous growth in the B2B sector, especially in areas like HVAC, the Company plans to strengthen its capabilities by establishing a complete, local business operation that encompasses product development, production and sales, with a focus on the evident electrification trends in regions such as North America and Europe.
The LG Vehicle component Solutions Company achieved an annual revenue of KRW 10.1 trillion and operating profit of KRW 133 billion. In its 10th year since establishment, the Company not only surpassed the KRW 10 trillion revenue mark but also demonstrated eight consecutive years of growth since it began disclosing performance results in 2015. The share of total consolidated revenue has increased to 12 percent. This year, the Company aims to drive both external growth, leveraging a substantial order backlog, and qualitative growth in its operations. In in-vehicle infotainment, the Company is dedicating efforts to secure capabilities in the area of software-defined vehicles in response to the needs of OEMs. Drawing upon its differentiated technology accumulated in the home appliance and IT sectors, the Company will seek to further enhance the in-vehicle customer experience. In the e-Powertrain area, focus will be on strengthening product capabilities and early stabilization of overseas production bases to enhance responsiveness to customer demands. Additionally, in headlamps, there are plans to expand premium product orders while simultaneously improving operational efficiency.
The LG Home Entertainment Company recorded an annual revenue of KRW 14.2 trillion and operating profit of KRW 362 billion. The webOS platform-based content and services business solidified its position as a new source of revenue, showing a significant increase in operating profit compared to the previous year. The revenue slightly decreased amid a relatively slow recovery in demand for premium products like OLED. In anticipation of a progressive recovery in TV demand this year, the Company will seek to strengthen both the top-tier OLED lineup and the QNED lineup, following a dual-track strategy to lead the premium market. Simultaneously, the Company is accelerating its transformation into a media and entertainment powerhouse. In the current year, the webOS platform business is slated for nurturing as a significant revenue-generating venture in the scale of trillions.
The LG Business Solutions Company recorded an annual revenue of KRW 5.4 trillion and operating loss of KRW 42 billion. The revenue saw a slight decrease compared to the previous year due to delays in IT demand recovery and reduced investments from key enterprises. Increased investments in future growth areas such as robotics and electric vehicle charging had an impact on profitability. In this year, the Company is positioning itself with a competitive lineup of IT products, including gaming monitors and the LG gram Pro, and will actively seek to find business opportunities targeting distinct verticals such as government agencies and schools. As a leader in LG’s B2B business, it aims to accelerate the shift from supplying single products to integrating and providing adjacent solutions. With a significant proportion of new businesses within the organization, investments will be prioritized for future preparations rather than short-term management performance.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on January 25, 2024, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants are instructed to pre-register online to receive a private PIN. To participate in the conference call, dial +82 31 810 3130, enter passcode 6418# and then the PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.
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By News Reporter
LG Celebrates the Decade-Long Journey of webOS With Immersive Experiences From
the Upcoming Masters of the Air on Apple TV+ and More Exciting Content
LAS VEGAS, Jan. 9, 2024 — LG Electronics (LG) welcomes visitors to the company’s booth at CES 2024 with a wealth of entertaining and dazzling experiences through the webOS zone. Building on its legacy of showstopping installations on vivid self-lit OLED displays, LG’s Home Entertainment Company continues to redefine itself as a media and entertainment powerhouse. The webOS smart TV platform breathes life into immersive visuals and inspiring narratives, aligning with the company’s visionary transformation.
Thanks to the numerous OLED displays, the attention-grabbing webOS installation engrosses visitors in the world of infinite entertainment, each moment enlivened thanks to LG OLED’s unrivaled picture quality and unique form factors. This captivating experience highlights LG’s commitment to pushing technological boundaries and providing the ultimate entertainment experience.
An invitation to explore the world of entertainment powered by webOS platform, the webOS Zone treats guests to an extensive collection of video clips from a diverse range of genres, sourced from content partners. Among the highlights is an exclusive experience of ‘Masters of the Air,’ the highly-anticipated action-packed epic series from Apple TV+, produced by Steven Spielberg, Tom Hanks and Gary Goetzman. The compelling series preview teases viewers with breathtaking visuals and an explosive, dynamic soundscape. ‘Masters of the Air’ premieres exclusively on Apple TV+ on January 26 and will be available to watch on LG Smart TVs via the Apple TV app.
With impressive visuals and spellbinding storytelling, audiences will be enchanted by the live-action reimagining of ‘The Little Mermaid’ now streaming on Disney+, a story of a beautiful and spirited young mermaid with a thirst for adventure, brought to life by filmmaker Rob Marshall. Superb cinematography on OLED displays transports viewers to the seashore, with waves gently lapping at the feet and soothing sounds of the ocean in the background.
Attendees can anticipate a mesmerizing exploration of space with exciting clips from the ‘Rebel Moon’ Netflix series, released last December, and a sneak peak of the highly anticipated series, ‘Star Trek: Discovery’ from Paramount+. Offering an enthralling glimpse into unexplored planets and otherworldly landscapes, the videos promise unprecedented encounters with intricate space battles and the cosmic frontier.
The webOS Zone also presents imaginative stories that are sure to captivate adventure lovers. Scenes from Prime Video’s ‘The Lord of the Rings: The Rings of Power’ invite spectators to step into the epic landscape of Middle-earth and feel the irresistible allure of sweeping action, harrowing journeys and the rise of one of the greatest villains of all time: the Dark Lord Sauron.
What’s more, fans of fighting games will be delighted with a clip of Tekken 8, set to be released on January 26 by Bandai Namco Entertainment and expected to be one of the best games of the genre this year.
Established in 2014, LG’s webOS platform has emerged as a global leader with its evolution into one of the most widely used smart TV platforms, with a continuously expanding user base. Boasting a compelling selection of content for LG Smart TVs around the world, the company delivers an extensive collection by maintaining valuable partnerships with more than 3,500 content providers. LG’s decade-long commitment to fostering strong relationships with streaming service partners has enhanced the home entertainment experience for millions of customers worldwide.
LG is dedicated to upholding its leadership position in the realm of viewing experiences with technological advancements and content curation. Through the ongoing evolution of webOS, LG strives to enrich lives by providing customers with infinite entertainment and endless inspiration.
LG’s awe-inspiring webOS zone will be on show at CES 2024 from January 9-12 in the company’s booth (#16008, Las Vegas Convention Center). For more information on LG products unveiled at CES 2024, please visit
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By News Reporter
SEOUL, Jan. 8, 2024 — LG Electronics Inc. (LG) today announced its preliminary earnings results for the fourth quarter and full-year of 2023.
LG reported an annual consolidated revenue of KRW 84 trillion, marking the third consecutive year of achieving the highest annual revenue, and an annual operating profit of KRW 3.5 trillion. These figures demonstrate a resilient business performance, approaching the results observed during the prior period of pent-up demand, despite challenges posed by delayed demand recovery from the economic slowdown as well as heightened market competition.
The historic high in annual revenue can be attributed to the robust fundamentals of LG’s core businesses and the growth experienced in B2B sectors. Notably, the compound annual growth rate (CAGR) of LG’s revenue over the last three years stands at over 13 percent. Additionally, the annual operating profit demonstrated a solid performance, reaching levels comparable to the preceding year.
LG’s effective management performance in the face of a challenging external environment is particularly noteworthy, setting it apart within the industry. Strategic efforts to enhance the business portfolio, including the early identification of market turning points to drive high growth in B2B sectors, played a pivotal role. Business model innovation, such as diversifying from hardware-oriented businesses to platform-based service business, also contributed to maintaining stable profitability.
In the home appliance & air solution business, LG is expected to have achieved an annual revenue milestone of KRW 30 trillion. Strategic market approaches, such as expanding volume zone lineups while retaining premium leadership to address demand polarization, played a key role in this success. B2B expansion in areas like HVAC, components and built-in appliances further contributed to overall growth. Going forward, LG will concentrate efforts on strengthening core competencies in product and manufacturing competitiveness, while accelerating changes in business models, including direct-to-consumer (D2C) and subscriptions, to prepare for the future. The company will also accelerate efforts to evolving its smart home solutions, reflecting the value of “Zero Labor Home,” by expanding the lineup of home appliances embedded with operating systems.
The vehicle component solutions business is anticipated to have exceeded KRW 10 trillion in annual revenue within a decade of its establishment, becoming one of LG’s core businesses. The average operating rate of production facilities has surpassed 100 percent since last year, driving growth. Starting this year, LG will intensify efforts to secure capabilities in the evolving trend of software-defined vehicles while aiming for growth in volume. Leveraging differentiation technologies accumulated in home appliances and IT, the company plans to enhance in-vehicle experiences while accelerating the efficiency and synergy of the entire business, including EV components and headlamps.
Despite challenges in key markets like Europe, the home entertainment business experienced meaningful growth in webOS content and services. This year, the expansion of the webOS ecosystem will extend beyond TVs to encompass smart monitors, in-vehicle infotainment and other areas, further broadening the business scope. From a product perspective, LG will significantly strengthen both the top-tier OLED lineup and the QNED lineup, following a dual-track strategy to lead the premium market.
The business solutions company is concentrating on the early commercialization of key areas such as EV charging and robotics. As a leader in LG’s B2B business, the segment aims to accelerate the shift from supplying single products to integrating and providing adjacent solutions. With a significant proportion of new businesses within the organization, investments are prioritized for future preparations rather than short-term management performance.
It is important to note that these figures represent tentative consolidated earnings based on the Korean International Financial Reporting Standards and are provided as a service to investors before LG Electronics releases its final earnings results. The official announcement of confirmed results, including the net profit for the year 2023 and the management performance of each Company, is scheduled for later this month.
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By News Reporter
High Performance, Strong Profitability Reflect Progress in Advancing Busines
Portfolio, Accelerating B2B Business and Procuring New Growth Engines
SEOUL, Oct. 27, 2023 — LG Electronics Inc. (LG) today announced third-quarter 2023 consolidated revenue of KRW 20.7 trillion and operating profit of KRW 996.7 billion, both the second highest third-quarter figures in the company’s history. The noteworthy performance was driven by both the company’s core home appliance business and vehicle solutions, one of its future growth engines. Home appliances more than doubled its operating profit year-over-year while vehicle solutions recorded an all-time high operating profit.
The strong performance reflects the company’s smooth progress in the execution of its future vision for 2030, leading to solid revenue and profits despite a prolonged economic slowdown. The fundamentals of LG’s 2030 vision, announced last July, is to focus on B2B expansion, non-hardware business model innovation as well as the development and acquisition of new growth engines with the aim to go beyond a home appliance company to truly become a Smart Life Solutions company capable of connecting and expanding diverse spaces and experiences.
The revenue growth was greatly bolstered by expansion in B2B, including automotive parts and HVAC systems – a key factor behind the second highest third-quarter figure in the company’s history. Revenue in B2B grew significantly to account for approximately 35 percent of overall revenue this year.
B2B segments are less influenced by economic conditions compared to B2C, and stable revenue and profits can be expected once the business is properly set up. Another merit is the lock-in effect that can help promote the development of a strong long-term relationship with clients and customers. LG plans to develop additional growth opportunities in the area by going beyond merely supplying B2B products to expand into providing high added-value business solutions in connection to the supplied products. The goal will be to boost B2B revenue to over KRW 40 trillion by 2030.
Third-quarter operating profit increased by more than 30 percent both year-over-year and quarter-over-quarter. A key contributor to the high profitability was the company’s business model innovation – combining non-hardware solutions such as content and subscription services with traditional hardware products such as home appliances and TVs. In the past, a one-off revenue was recorded when a product was sold. This has now transformed into generating recurring revenue from the use of solutions on platforms installed in the millions of products used by consumers of LG devices.
In developing and acquiring new growth engines, LG aims to focus on investing in promising businesses that not only show high potential but can also create synergy with existing businesses. Investment into electric vehicle charging is a prime illustration of such strategy. The company has plans for global expansion beginning next year in collaboration with diverse partners.
The seamless operation and solid progress of the company’s 2030 vision’s three pillars – leading growth of company (B2B), generating profit (non-hardware) and boosting enterprise value (new growth engines) – is a strong demonstration of LG’s advancement toward achieving Triple 7 (average growth rate and operating profit of 7 percent or more and enterprise value to EBITDA ratio of 7 or more).
LG will continue to focus on accelerating its business portfolio transformation efforts into the fourth quarter, seeking to maintain high-growth in B2B with vehicle component solutions taking the lead, while at the same time growing sales of key product lineups as the end-of-year peak season approaches. Simultaneously, the company plans to optimize efficiencies through enhanced demand forecasting to support stable profitability going forward.
The LG Home Appliance & Air Solution Company generated third-quarter revenue of KRW 7.46 trillion and an operating profit of KRW 504.5 billion. The operating profit more than doubled year-over-year, attributable to strong competitiveness in overall business operations including manufacturing, procurement and logistics. Revenue maintained strong versus last year’s third quarter, aided by strategic repositioning of product lineups in response to softened demand as well as expansion of B2B lineups including HVAC, parts and built-in appliances. LG plans to leverage the electrification and decarbonization trend in HVAC systems to accelerate its B2B growth momentum. For example, in the United States, the company recently committed to a series of actions supporting California’s goal to install six million electric heat pumps by 2030. LG is also actively expanding its HVAC portfolio with new Dedicated Outdoor Air Systems. In the fourth quarter, the company will seek to spearhead a paradigm shift in home appliances with the LG ThinQ UP 2.0 expanding business into services and subscriptions. Four upgraded features for the ThinQ UP have already been released in North America, accelerating the speed of customer experience innovation.
The LG Vehicle component Solutions Company’s third-quarter revenue was KRW 2.5 trillion and operating profit KRW 134.9 billion – the highest among all third-quarter revenue and operating profit. The company is accelerating its pace of growth based on stable management of its supply chain and an order backlog that is expected to reach KRW 100 trillion by the end of the year. The business unit is expected to exceed KRW 10 trillion in annual revenue for the first time this year, setting the stage to become a key driving force in LG’s overall growth. Growth is still expected to be high due to the accelerating transition to electric vehicles and soaring demand for high added-value parts, despite some concerns of a temporary slowdown of demand in the automotive parts industry. In light of such developments, LG plans to maintain its growth momentum by focusing on high added-value projects and acceleration of regional production at the LG Magna plant in Ramos Arizpe, Mexico.
The LG Home Entertainment Company recorded third-quarter revenue of KRW 3.57 trillion and an operating profit of KRW 110.7 billion. The company maintained its profitable growth by effectively managing marketing expenses despite increased LCD panel prices, while also diversifying profit sources based on the growth of content and services business built on its smart TV platform. The company is accelerating its transition from a product-based business to a platform-based media and entertainment business as the content and services market continues to grow. To this end, in addition to expanding collaboration with various content providers, the company is upgrading TV operating systems to expand the content experience of customers. The number of TVs powered by webOS, the foundation of LG’s content and services business, is expected to reach 300 million units by 2026.
The LG Business Solutions Company’s third-quarter revenue was KRW 1.33 trillion with an operating loss of KRW 20.5 billion. Both revenue and profitability weakened due to the softening of demand for IT products. As challenging business conditions persist, the company continues to innovate customer experiences with premium IT lineups such as commercial displays and foldable laptops that provide customized solutions, while also making progress in fostering the electric vehicle charger business, one of LG’s new growth engines.
Earnings Conference and Conference Call
LG Electronics will hold a Korean / English conference call on October 27, 2023, at 16:00 Korea Standard Time (07:00 GMT/UTC). Conference call participants are instructed to pre-register online to receive a private PIN. To participate in the conference call, dial +82 31 810 3130, enter passcode 6418# and then the PIN. The corresponding presentation file will be available for download at the LG Electronics website before the call.
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