LG has announced its first quarter results, and the news is good, with smartphone sales up strongly.
LG posted a revenue of 14 trillion won (£8.25 billion) which was almost identical to the amount taken the previous year – because while phone sales might have been up, LG’s TVs didn’t perform so well, offsetting the gains.
Net profit was 38.4 billion won (£23 million) and operating profit hit 305.2 billion won (£180 million), both up strongly on the previous quarter.
LG’s mobile arm, as mentioned, was the strong performer, and indeed managed to hit its best Q1 revenue since Android devices were first produced by the company (back in 2010). The company shipped 15.4 million smartphones in total, up 26 per cent on Q1 2014, and sales reached 3.6 trillion won (£2.1 billion) which was up 5 per cent.
The company noted two particularly strong territories for handsets – North America was up 66 per cent year-on-year, and Korea was up 57 per cent on Q4 2014.
Meanwhile, the LG Home Entertainment Company was down 5 per cent year-on-year, dropping to 4.44 trillion won (£2.6 billion). LCD TV sales dropped across Europe, the US and other territories which LG blamed on “unfavourable currency exchange and seasonality”. The company reckons a new push with OLED and 4K TVs will see a second quarter improvement.
As for the other divisions, the LG Home Appliance & Air Solution Company managed a 9 per cent increase in operating profit, but revenue was down 2 per cent year-on-year to 4.06 trillion won (£2.4 billion). The new LG Vehicle Components Company – which was created less than two years ago – announced figures for the first time, with revenue of 382.6 billion won (£225 million).
With the launch of the LG G4 – we covered the big press event yesterday, of course – the company will doubtless expect its smartphone division to be boosted further still.