LG Electronics reported a home entertainment operating loss of $87.5 million in the fourth quarter (ended Dec. 31, 2022). The division, which includes all LG televisions, soundbars, headphones and related in-home consumer electronics, reported a near 10% quarterly revenue drop to $3.65 billion, from $4.05 billion in the previous-year period.
South Korea-based LG attributed the quarterly fiscal sales and loss due to the geopolitical risk stemming from the prolonged Russia-Ukraine military conflict and weakened consumer sentiment caused by concerns of a global economic downturn.
For fiscal 2022, home entertainment revenue of $12.8 billion and operating profit of just $4.4 million. That was down from revenue of almost $14 billion and operating income of $888 million.
Although lower global TV demand impacted revenue and operating profit versus 2021, LG’s content and services business based on its proprietary smart TV platform, including SVOD and AVOD, has grown tenfold since 2018.
At the recent Consumer Electronics Show in Las Vegas, Paramount+ and Pluto TV announced plans adding more than 100 content channels to LG smart TVs.
Going forward, LG said it would focus on expanding its smart TV platform while continuing to push the premium TV segment, such as OLED TV and QNED TV, as well as effectively managing marketing expenses.