LG HelloVision's operating profit has deteriorated due to changes in the broadcasting market, including the expansion of over-the-top (OTT) services and a decline in video-on-demand (VOD) usage, as well as the impact of its business portfolio restructuring.
On November 4, LG HelloVision announced that its consolidated operating profit for the third quarter of this year fell 97.5% year-on-year to 200 million won.
Revenue decreased by 24.2% to 226.2 billion won compared to the same period last year. Compared to the previous quarter, revenue dropped by 7%, while operating profit fell by 92.5%.
By business segment, the home business generated 208.9 billion won, while regional-based businesses, including media and business-to-business (B2B) services, brought in 16.9 billion won, and other businesses accounted for 400 million won. The home business consists of broadcasting at 120.4 billion won, internet services at 33.1 billion won, mobile virtual network operator (MVNO) services at 35.3 billion won, and rental services at 20.1 billion won.
Broadcasting revenue decreased by 1.9% year-on-year to 120.4 billion won, while MVNO revenue fell by 8.9% to 35.3 billion won.
The broadcasting segment focused on subscriber retention, while the MVNO sector continued to experience market stagnation. The rental segment saw a decline in performance compared to the previous year due to intensified competition in the electronics market and the restructuring of low-profit partnership channels. The regional-based business reflected a decrease in revenue from local cultural projects and electric vehicle charging services.
Kim Young-jun, CFO and CRO of LG HelloVision, stated, "Amid rapid changes in the business environment, we are undergoing rigorous restructuring to strengthen our business fundamentals. We will focus on stabilizing our cost structure and improving profitability through the recovery of core competitiveness and qualitative growth."
* This article has been translated by AI.
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