LG Electronics said that a strong performance from its mobile unit, as well as its TV operation, led to a 165 per cent increase in Q2 group profit, as the company also saw record smartphone shipments.
LG Mobile Communications shipped 14.5 million smartphones during the three months, a 20 per cent year-on-year increase. More than one-third of all LG smartphones sold this year included LTE connectivity.
And this has translated to strength in the numbers. An operating profit of KRW85.9 billion ($83.4 million) for the mobile unit ends three consecutive quarters of loss (Q2 2013 was profitable, at KRW61.2 billion).
Mobile Communications sales increased 16 per cent year-on-year to KRW3.62 trillion, and the company said this is its highest since the first quarter of 2010.
The success was attributed to “the initial popularity of the LG G3 in the Korean market and strong sales of L Series III smartphones”.
LG did sound some caution with regard to development of the smartphone market in the rest of the year, noting “market competition will be intensified due to continuous launch of new models in [the] premium segment and intensifying price competition as a result of the sales expansion from the mass market.”
On a group level, the company reported a net profit of KRW411.8 billion, up 164.8 per cent year-on-year, on revenue of KRW15.37 trillion, up 0.9 per cent.
In its Home Entertainment group, which includes TVs, the company saw an operating profit of KRW154.5 billion, up 64.9 per cent year-on-year, on sales that were flat at KRW5.09 trillion.
The company cited “better product mix and lower fixed costs”, with demand for ultra HD televisions in key markets set to drive LCD TV revenue growth.