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LG mobile profits weaken on marketing costs, competition

2013-10-24 08:32:00| Telecompaper Headlines

(Telecompaper) LG Electronics reported a continued strong rise in mobile phone sales in the third quarter, but moved to an operating loss at the activities due to extra marketing costs for the launch of its flagship G2 smartphone. Mobile revenues rose 24 percent year-on-year to KRW 3.045 trillion. The operating loss was KRW 80 billion, versus a profit of KRW 61 billion in Q2 and a loss of KRW 5 billion a year earlier. LG shipped 12.0 million smartphones in the quarter, slightly less than 12.1 million in Q2. Shipments of LTE phones were up 31 percent from the previous quarter thanks to the introduction of the G2. LG said competition intensified, especially in the 3G market, leading to a lower average selling price. In Q4, it aims to grow sales in the premium segment with the further roll-out of the G2, as well as step up marketing for mass market LTE and 3G phones during the holiday season. Overall, LG Electronics reported quarterly sales up 4.6 percent year-on-year to KRW 13.89 trillion (USD 12.51 billion), as the growth in mobile offset a difficult TV market and negative forex effects. Operating profit improved to KRW 218 billion from KRW 172 billion a year ago, while net profit fell to KRW 109 billion from KRW 165 billion.

Tags: mobile marketing costs competition

Category:Telecommunications

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