LG Display's Q2 2025: Strategic Shifts and Contradictions in OLED Investments and Market Outlook

OLED Transition and Revenue Decline:
- LG Display reported sales of KRW 5.587 trillion for Q2, down 8% Q-o-Q and 17% Y-o-Y.
- The decline is attributed to the Seasonal off-peak period for smartphones, the termination of the LCD TV business, and a stronger Korean won exchange rate.

Operating Loss and Profit Improvement:
- The company posted an operating loss of KRW 116 billion in Q2, with an operating loss of KRW 82.6 billion for the first half of 2025.
- Despite a 3% decline in sales Y-o-Y, operating loss improved by KRW 480.5 billion Y-o-Y, driven by efforts to upgrade business structure to OLED, cost reduction, and operational efficiency.

ASP Increase and OLED Share Expansion:
- ASP per square meter increased by 32% Q-o-Q to $1,056, supported by the exit from the LCD TV business and changes in shipment mix.
- The OLED portion of total revenue increased by 1 percentage point Q-o-Q and 3 percentage points Y-o-Y, reaching 56%, reflecting continued growth and strategic focus.

Capital Structure and Debt Reduction:
- The debt ratio stood at 268% and net debt-to-equity ratio at 155%, representing significant decreases of 40 and 19 percentage points Q-o-Q, respectively.
- This improvement is due to early loan repayments, debt reduction, and the sale of the Guangzhou LCD TV plant.