LG Electronics sees record appliance subscription revenue and profit growth

LG Electronics has achieved record revenue in its appliance subscription business, which reached 1.15 trillion won ($820 million) in the first half of the year. This represents a more than threefold increase compared to the same period in 2022. The growth is driven by the expansion of the model into premium products, overseas markets, and business-to-business (B2B) housing projects.

Key B2B developments include an agreement with Hyundai Engineering & Construction to provide appliance subscriptions for approximately 7,000 homes in Seoul redevelopment districts, and a 15 billion won deal with Korea Land & Housing Corp. to supply appliances to 5,400 public rental homes.

In terms of overall profitability, LG has seen a significant divergence from Samsung Electronics in the home appliance and visual display sectors. While both companies report similar revenues in these categories, LG generated an operating profit of 1.14 trillion won in the second quarter, whereas Samsung’s digital appliance and visual display business reported an operating loss of approximately 10 billion won. Analysts attribute LG’s performance to a stronger mix of premium products and a more successful diversification beyond traditional hardware sales.