LG HelloVision posted weak results in the second quarter of this year, hit by the downturn in the broadcasting and telecommunications markets.
According to LG HelloVision on the 6th, it recorded consolidated revenue of 243.3 billion won, operating profit of 3 billion won, and net profit of 1.1 billion won for the second quarter, on a provisional basis.
Revenue fell 31.3% year on year, or 110.8 billion won, and was also down 4.7%, or 12.1 billion won, from the previous quarter. Operating profit dropped 71.7%, or 7.5 billion won, from a year earlier and 41.8%, or 2.1 billion won, from the previous quarter.
By business segment, broadcasting generated the most revenue at 119.8 billion won, followed by internet services at 33.5 billion won and Mobile Virtual Network Operator (MVNO) services at 36.8 billion won. Rental services brought in 30.8 billion won, while the local-based business, including media and B2B, posted 21.9 billion won in revenue. Broadcasting and MVNO revenue fell 2.7% and 9.9%, respectively, from a year earlier. The company attributed the decline mainly to lower Video on Demand (VOD) sales and intensifying competition over low-cost mobile plans in the telecom market.
Rental revenue fell 31.7% from a year earlier and 24.6% from the previous quarter. The local-based business also saw revenue decline as a result of portfolio adjustments.
LG HelloVision is expanding its VOD services in broadcasting, including a monthly subscription-only section that curates content by genre. In the MVNO segment, it is also rolling out partnership plans that combine insurance and coupon benefits to strengthen its subscriber competitiveness.
Kim Young-joon, Chief Financial Officer (CFO) and Chief Risk Officer (CRO) at LG HelloVision, said, "In the second half, we will lay the groundwork for restoring competitiveness and profitability through continued management efficiency improvements."
Kim Se-hyung, Reporter
This article has been translated by GripLabs Mingo AI.
