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LG Electronics Posts Record Revenue, Profit Dips on Rising Costs

The company's subscription services and B2B operations bolster growth amid market challenges
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LG Electronics Inc. reported a mixed bag for its third-quarter 2024 results, with record-high revenue offset by a decline in operating profit. The South Korean tech giant saw consolidated revenue climb to 22.17 trillion won (US$16.7 billion), marking its fourth straight quarter of year-over-year growth. However, operating profit fell to 751.1 billion won (US$565 million), pressured by increased logistics and marketing expenses.

The company’s strategy to upgrade its business portfolio through subscription services and B2B operations has helped maintain growth despite headwinds. LG’s home appliance sector continues to expand its subscription business, while the vehicle components division reports a substantial order backlog.

In the home entertainment segment, OLED TV demand showed signs of recovery in key markets, but profitability was impacted by higher LCD panel costs. LG’s webOS-based content and service business remains a bright spot, contributing significantly to operating profits.

Looking ahead, LG plans to diversify its product portfolio, boost online sales, and tailor offerings to regional needs. The company is also investing in promising ventures like robotics and EV chargers to secure future growth.

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