LG HelloVision announced through a provisional business performance disclosure on the 9th that it recorded sales of 267.2 billion won, operating profit of 4.1 billion won, and net profit of 1.5 billion won in the first quarter of this year.
In the first quarter, sales decreased by 104 billion won (3.7% decrease) compared to the same period last year, and operating profit decreased by 76 billion won (64.8% decrease) compared to the same period last year. The decline in performance was influenced by the base effect of one-time revenue such as educational smart terminal sales reflected in the first quarter of 2023, but it is expected to be recovered in the second half as projects like the supply of terminals to Jeonbuk Education Office in April are reflected.
By business segment, broadcasting achieved 128.1 billion won, telecommunications 33.9 billion won, and MVNO revenue 38.2 billion won. Local business inclusive of media and B2B recorded 42.8 billion won, and rental recorded 23.8 billion won.
In broadcasting and telecommunications sectors, efforts to strengthen the foundation are ongoing to maintain subscribers, but performance slightly declined due to the contraction of the cable TV market. LG HelloVision plans to improve performance with the launch of ‘Hello tv Pro,’ its first technology-neutral product based on Internet Protocol (IP) introduced in April. In the MVNO sector, subscriber growth is being maintained through the expansion of SIM self-supply combinations and direct sales malls.
Rental and local-based business segments showed improved performance. In the rental sector, demand increased for MZ-specific products such as robot vacuum cleaners and standby mixers based on rational and practical consumption trends. In the media sector, LG HelloVision continues to present diverse ‘local entertainment’ contents based on regional and thematic diversity, following the acquisition of PP business, with shows like ‘MAKE Mi-nam – Transform My Man’ and ‘The Eye-catching Girls Season 5’.
In particular, regional channel commerce is making new attempts such as developing differentiated products. Following the launch of the first regional shared product ‘Land’s End Village Hannam Kimchi’ developed in collaboration with local governments last year, LG HelloVision consistently discovers local specialties like ‘Namwon Chueotang’ and ‘Sunchang Gochujang Bulgogi’.
Reporter Sang-gyu Lee
