LG Display Co Ltd, a South Korean Apple Inc supplier, reported on Thursday its fifth straight quarter of operating losses, hit by slumping demand for smartphones and televisions.

The company reported the following results for the three month period ending March 31, 2020:

• Revenues in the first quarter of 2020 decreased by 26 to KRW 4,724 billion from KRW 6,422 billion in the fourth quarter of 2019 and decreased by 20% from KRW 5,879 billion in the first quarter of 2019.
• Operating loss in the first quarter of 2020 recorded KRW 362 billion. This compares with the operating loss of KRW 422 billion in the fourth quarter of 2019 and the operating loss of KRW 132 billion in the first quarter of 2019.
• EBITDA in the first quarter of 2020 was KRW 630 billion, compared with EBITDA of KRW 586 billion in the fourth quarter of 2019 and with EBITDA of KRW 679 billion in the first quarter of 2019.
• Net loss in the first quarter of 2020 was KRW 199 billion, compared with the net loss of KRW 1,817 billion in the fourth quarter of 2019 and the net loss of KRW 63 billion in the first quarter of 2019.

LG Display registered KRW 4,724 billion in revenues and KRW 362 billion in operating loss in the first quarter of 2020.

The revenue decrease of 26% quarter on quarter from KRW 6,422 billion was driven by low seasonality which led to a reduction in sales of products with high ASP (Average Sales Prices) per square meter, such as P-OLED products. In addition, the company's panel area shipments decreased quarter on quarter due to its continued move toward the structural improvement of the LCD business as well as a production setback caused by the COVID-19 outbreak.

The company recorded an operating loss of KRW 362 billion, a slight quarter on quarter improvement due to an increase in LCD TV panel prices and favorable foreign exchange rates, as well as an effort to minimize overall costs including material costs.

Panels for mobile devices accounted for 32% of the company's revenue in the first quarter of 2020, 4% down from the previous quarter due to the low seasonality. Panels for TVs accounted for 31%, while those for tablets and notebook PCs accounted for 20% and desktop monitors for 17% respectively.

LG Display recorded 186% in the liability to equity ratio, 91% in the current ratio, and 87% in the net debt-to-equity ratio as of March 31, 2020.

“We expect volatility in demand to increase down the road, as industry sectors are impacted by the COVID-19 outbreak. The difficult situation will inevitably linger, although it is expected that demand in IT products will grow due to stay-at-home orders and consequent surge in online activities. We will do our best to continue to seize such business opportunities, including any increase in demand in IT products where LG Display has a competitive advantage, as well as to strengthen cash management by optimizing inventory and minimizing input of resources,” said Dong-hee Suh, CFO and Senior Vice President of LG Display.

In an effort to stem losses, LG Display has said it will halt domestic production of LCD TV panels by the end of this year.

Samsung Display, a unit of Samsung Electronics Co Ltd, said last month it will end all production of LCD panels by the end of this year.