LG Display reported a third consecutive quarter of operating profit Thursday, with earnings surging on stronger OLED sales and cost reductions despite seasonal demand weakness.

Operating profit for the January-March period reached 146.7 billion won ($108 million), up 338 percent from a year earlier. Revenue declined 9 percent on-year and 23 percent from the previous quarter to 5.53 trillion won, while net loss widened to 575.7 billion won.

The earnings improvement was driven by a higher mix of OLED products and a shift toward premium customers, alongside continued cost cuts and operational efficiencies, the company said.

“Despite external uncertainties, our competitiveness in high-end products is strengthening, supported by rising technological barriers,” said Kim Sung-hyun, chief financial officer of LG Display.

OLED accounted for 60 percent of total sales, up 5 percentage points from a year earlier, even amid seasonal softness. Average selling prices per unit area rose 55 percent on-year.

By segment, IT panels accounted for 37 percent of sales, followed by mobile and other products at 37 percent, TV panels at 16 percent and automotive panels at 10 percent.

LG Display said it would further strengthen its OLED-focused strategy while maintaining strict cost discipline to build a more sustainable profit structure. The company plans to leverage its small- and mid-sized panel capacity to respond flexibly to demand, while focusing on high-value products such as tandem OLED and premium LCD.

In large panels, it will expand premium OLED offerings and target growing demand for monitors, particularly gaming displays.

Separately, the board approved a 1.1 trillion won investment in new OLED infrastructure on Wednesday, underscoring its commitment to long-term growth in the segment.

By Jo He-rim (herim@heraldcorp.com)