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LG Display reports biggest profit in years thanks to increased demand

Apple isn’t the only company making serious money this year.

LG Display has also reported 1.35 trillion won (approximately £820m) in operating profits last year, Korea Times reports.

And that’s 16.7 per cent up from a year earlier, making it the largest increase in six years.

The reason for the jump lies mostly in a stronger demand for handset displays.

In a filing to the Korea Exchange (KRX) Wednesday, the LG affiliate said sales came in at 26.4 trillion won, down 2.1 per cent. Despite the drop in sales, its net profit jumped 119 per cent to 917.4 billion won on stronger margins.

The company said it will pay 500 won in dividend per share (£0.30), with a total dividend pay-out of 180 billion won (approximately £109m). This is also the first dividend pay-out in four years.

"As we saw substantial improvement in profit, we've decided to boost shareholder value," said Lee Jung-hwan, head of the company's public relations team.

Analysts were positive about the result and its outlook for the first quarter of this year.

"The overall business mood for LG Display looks positive. Apple's first-quarter performance beat market consensus on the back of strong iPhone demand in China and North America.

"As LG Display is the major display supplier for Apple devices, the first quarter will be much better," said Kwon Seong-Ryeol, an analyst at Dongbu Securities.

LG supplies displays to Apple, Hewlett-Packard, Dell, Sony and other top-tier Chinese TV makers, and their share prices gained 8.5 per cent so far this year.