LG Electronics saw an upsurge in first-quarter profits, increasing 65.5 per cent compared with the same period last year. But they were boosted by 207 per cent in its Home Entertainment division thanks to 4K and OLED TVs.
The electronics giant made an overall operating profit of 505.2 billion won (£304.5m) on sales of 13.36 trillion won (£802bn).
The LG Home Appliance and Air Solution Company contributed the largest amount, with 407.8bn won in operating income for the quarter. It also saw a 4 per cent year-on-year increase in sales to 4.22 trillion won, which was driven by higher premium product sales and growth in its B2B operations.
Operating profit and operating margin of 9.7 per cent were the highest in the history of LG home appliances.
However, the LG Home Entertainment Company experienced a 2.3 per cent quarter-to-quarter dip in revenue to 4.33 trillion won. This was attributed to a decline of TV shipments in key markets in Europe and North America.
Operating income, on the other hand, increased by 207 per cent to 335.2bn won over the same quarter of the previous year. This, the company said, demonstrated “growing demand for premium OLED and 4K OLED TV”. Operating margin was 7.7 per cent
LG also expected overall global sales and profitability to improve in the second quarter, with double-digit growth in revenues and higher profitability anticipated.