UHD drives LG Home Entertainment profit
October 27, 2016
LG Electronics has announced Q3 2016 sales of KRW 13.2 trillion (€10.8b) and operating income of KRW 283.2 billion, reflecting strong performance of its Home Appliance & Air Solution business and increased profitability in Home Entertainment, which offset sales declines and operating losses from Mobile Communications.
LG Home Entertainment Company reported the highest operating profit and margin in its history with KRW 381.5 billion and 9.2 per cent, respectively, as sales of premium LG OLED and Ultra HD TVs continued to gain traction in key markets around the world. Due to price erosion driven by intense competition, sales declined by 3.4 per cent from last year’s third quarter with revenues of KRW 4.1 trillion nearly unchanged from the previous quarter. With the peak holiday selling season ahead, overall demand for TV products is expected to increase although profitability will likely be affected by higher material costs and increased marketing investments.