In the first quarter of 2021, LG Electronics reported a return to profitability in its TV business thanks to the recovery of demand in Europe and the increasing popularity of streaming services. The South Korean electronic maker generated 21 trillion won in revenue and 1.33 trillion won in operating profit for the quarter from January to March. Although operating profit slightly dropped from the previous year, it was noted that this was amidst a global economic slowdown.
LG’s home appliance sales were a major contributor to its profit with 940.3 billion won and a margin rate of 10.9%, representing a significant double-digit rate for sales of refrigerators and washing machines. TV sales also made a contribution of 132.2 billion won, marking a return to profitability for the business unit that had suffered from low consumer demand in the previous year.
The company attributed its success to its streaming service and content available on its webOS platform on TVs, which has been gaining popularity among consumers worldwide. LG expects TV demand to continue recovering throughout the year, with anticipated high sales of OLED and QNED TVs as well as premium gaming monitors. The increase in revenue was also tied to the success of the launches of its new 2024 model TVs in the market.