LG posts operating loss in Q1, smartphone division still struggles
LG Electronics published its financial report for Q1 2019 and the mobile division numbers make for a grim reading. Revenue keeps falling with only KRW1.51 trillion ($1.34 billion) generated between January and March. This is 30% less on an yearly basis and 11% quarter over quarter.
According to the official press release, the LG Mobile Communications Company managed to narrow its operational loss to KRW203.5 billion ($181 million) while in a process of rebuilding its smartphone business.
Expectations are the launch of LG V50 ThinQ 5G will create a positive momentum in the second quarter, while the relocation of the manufacturing plants from South Korea to Vietnam will improve profitability and competitiveness in the second half of the year.
Other divisions made sure that the company as a whole is in a healthy state though. Total revenue was KRW14.92 trillion ($13.27 billion) and operating profit stood at KRW900.6 billion ($801.25 million). So the good news is LG can afford to take care of its ailing mobile division until it finds its way back to profitability.
Reader comments
- AnonD-731363
- SH3
LG = Lost ground LG = LeGend (which comes to an end) LG = Last Grimreaper LG = Lost Gremlin etc.
- AnonD-731363
- SH3
Dear LG with your horrbile pricing compared to low end specs on most phones did you really think someone can buy an LG Leon for price of an Apple phone??? I dont think so. Even a tiny profit is a profit you should know that better than anyone el...
- Reader
- 6ty
LG mobile division surely be closed soon due to their worsen marketing strategies, i try my best to purchase LG Mob V40 but failed, because of, all LG outlet closed due to the poor sales and services in my country.
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