LG HelloVision reports lower revenue as device market contracts

LG HelloVision said that second-quarter revenue fell 31.3 percent to 243 billion won ($171 million) from 354 billion won a year earlier, citing a smaller market for educational smart-device distribution projects and difficult broadcasting and telecommunications conditions.

Operating profit fell 71.7 percent to 2.97 billion won ($2.08 million) from 10.5 billion won a year earlier, while net income dropped 84.1 percent to 1.14 billion won ($802,920) from 7.21 billion won.

Broadcasting generated 119.8 billion won in second-quarter revenue, followed by budget mobile services at 36.8 billion won, internet services at 33.5 billion won and rental at 30.8 billion won. Regional business, including media and business-to-business operations, recorded 21.9 billion won.

Broadcasting revenue declined 2.7 percent from a year earlier because of lower video-on-demand sales, while budget mobile revenue fell 9.9 percent amid competition from low-priced mobile plans. LG HelloVision introduced a subscription-only channel and rate plans tied to insurance and coupon packages. Rental revenue fell 31.7 percent, or 14.3 billion won, from a year earlier amid stronger home-appliance competition during the peak season, while regional business revenue declined as the company adjusted its portfolio.

"In the second half, we will continue management-efficiency efforts to lay the groundwork for restoring competitiveness and profitability," Kim Young-jun, an executive director and LG HelloVision's chief financial and risk officer, said.