Mobile device sales up 24 percent year-over-year

LG has just posted its third quarter 2013 financial results, encompassing earnings from its four major global divisions. As a complete company, LG posted $12.51 billion in revenues leading to $196.34 million in operating profit, which is up 27 percent year-over-year. We're most interested in the mobile side of things though, so let's get into the high points of LG's "Mobile Communications Company" for the quarter.

The mobile division posted revenues of $2.75 billion for Q3, which is up 24 percent year-over-year. Those solid revenues came from 12 million phones it shipped in the quarter, which nearly hits its record number of 12.1 million from Q2. LG claims that the average selling price of those handsets dipped due to competitive pressures, however.

Going forward it plans to focus on sales of its highest-end handsets like the LG G2 through the holidays, and simply letting sales of its lower-end 3G-only handsets sell to the masses. In all this is a solid quarter that continues along the same growth path from Q2.



Sales of Mobile Devices Increase 24 Percent From Same Period Previous Year

SEOUL, Oct. 24, 2013 — LG Electronics Inc. (LG) today announced third-quarter 2013 consolidated revenues of KRW 13.89 trillion (USD 12.51 billion). While competitive conditions in the TV sector and an unfavorable foreign currency exchange rate affected overall revenues compared with the 2012 third quarter, sales of mobile devices increased year-over-year by 24 percent. LG saw a 27 percent increase in third-quarter operating profit to KRW 217.80 billion (USD 196.34 million) compared with the same period last year.

The LG Home Entertainment Company reported revenues of KRW 5.01 trillion (USD 4.50 billion), a 7 percent decline from the same period a year ago, reflecting slower global TV demand and lower selling prices. Higher sales in developing markets such as Asia and the CIS region were offset by softness in Europe. Operating profit of KRW 124.40 billion (USD 111.68 million) increased both year-over-year and quarter-over-quarter as a result of more efficient management of operating and marketing expense. As it enters the holiday selling season, LG plans to expand global sales of premium products such as OLED TVs and Ultra HD TVs while continuing to carefully manage costs.

The LG Mobile Communications Company’s third-quarter revenues increased by 24 percent compared with the same quarter a year ago to KRW 3.05 trillion (USD 2.75 billion). The company shipped 12 million smartphones in the third quarter but profitability and average selling price were affected by increased competition and higher marketing investments. LG plans to focus on increasing sales of new premium products such as the LG G2 smartphone during the peak holiday season as well as maximizing 3G and mid-tier mass devices such as the L II Series and F Series.

The LG Home Appliance Company recorded revenues of KRW 2.97 trillion (USD 2.68 billion), up 3 percent from the previous year largely due to the positive reception of its new washing machines and refrigerators. LG appliance sales increased in North America and China but slowed in developing markets. Despite higher overall revenues and improved cost structure, third-quarter operating profit decreased from the same period last year to KRW 109.20 billion (USD 98.17 million) primarily due to unfavorable foreign exchange movements.

The LG Air Conditioning and Energy Solutions Company reported relatively flat third-quarter sales and operating profit margin year-over-year with revenues of KRW 973 billion (USD 876.32 million). While increased R&D investments and weak global market conditions will continue to impact the business, the company will focus on growing its market share of non-seasonal products and higher-margin products such as new commercial air conditioning systems.

2013 3Q Exchange Rates Explained
LG Electronics’ unaudited quarterly earnings results are based on IFRS (International Financial Reporting Standards) for the three-month period ending September 30, 2013. Amounts in Korean won (KRW) are translated into U.S. dollars (USD) at the average rate of the three-month period of the corresponding quarter — KRW 1,110 per USD (2013 3Q).

Earnings Conference and Conference Call
LG Electronics will hold a Korean language earnings conference on October 24, 2013 at 16:00 Korea Standard Time at the LG Twin Tower Auditorium (B1 East Tower, 20 Yeoui-daero, Yeongdeungpo-gu, Seoul, Korea). An English language conference call will follow later at 21:00 Korea Standard Time (12:00 GMT/UTC). Participants are instructed to call +82 31 810 3069 and enter the passcode 9084#. The corresponding presentation file will be available for download at the LG Electronics website (www.lg.com/global/ir/reports/earning-release.jsp) at 14:00 on October 24, 2013. Please visit http://pin.teletogether.com/eng/ and pre-register with the passcode provided. For those unable to participate, an audio recording of the news conference will be available for a period of 30 days after the conclusion of the call. To access the recording, dial +82 31 931 3100 and enter the passcode 142710# when prompted. 


Reader comments

LG Q3 2013 earnings - $2.78 billion in mobile revenues, 12 million phones shipped


Although I am not particularly fond of LG devices, except their Nexus phones, I am happy that there is some good healthy competition in the smart phone market.

Posted by the man who makes things happen...

While I know that it has no relevance, every Nexus OEM has had a successful financial year following the released of the Nexus device.

HTC (or Motorola) needs to make the next Nexus

Son had a great year with a LG G2X, now with his N4. I just got my VZW LG G2 and love it coming from a DNA and a Galaxy Nexus before that. My daughter's white LG G2 arrives Friday. N5 is next on our list. We loving these LG phones.

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Great for LG they have come a long way from 2009/2010. After the real leader of the android platform Samsung LG is a kool alternative.

Posted from my Galaxy Note 3 on Tmobile via Android Central App

I have a feeling the Nexus5 will be a bigger hit than Google imagined.... albeit probably a castrated G2, the pure Android 4.4 will make up for worse battery/camera and smaller screen.

LG makes some of the best hardware (spec wise), they just need to get rid of their fugly skin...

One way to look at the N5 is being a castrated G2. Another way to look at it is they are two completely different phones with only the processor being similar.

While I'll agree that the skin is not the most attractive in the world, it really does get out of your way when you use the phone. And the SW value adds that LG put into the G2 are really nice and useful.

I have a G2. I spent some time mostly disabling the LG bloat.

True value adds: Toggles in notification drawer, text selection/clipboard/clip tray

Neither good nor bad: Knock-on helps to turn on the phone when it's sitting on a flat surface and you don't want to pick it up to get at the buttons, but it doesn't work even close to 100% of the time.

Things worse than stock: Lock screen, launcher (both home screens and app drawer), soft keys, notification spam (particularly for wifi), QSlide apps in notification drawer, keyboard, SMS app, default app selection popups, and stupid animations when you plug in a USB cable or headphones, E911 icon that never goes away from the status bar.

The launcher, keyboard and SMS app can be replaced, and QSlide apps can be removed from the notification drawer.

The soft keys are stupid. They don't hide themselves well when apps are supposed to go full-screen, and there's absolutely no excuse for having a menu button and no multitasking button.

The lock screen is bad because if you're in an app that sends you a notification, as soon as you wake up the phone the notification goes away. Also when you try to swipe down the notification drawer from the lock screen a lot of times it unlocks the phone instead, because they made it so you can unlock from anywhere on the lock screen instead of actually having to hit the target.

I have no idea why they needed to change the default app selection popup from stock and make it uglier.

The animations when you plug in a USB or headphone cable interrupt whatever you're doing just to show this stupid animation.

In spite of all this though, I actually still like the phone.

Castrated? Those be fighting words! LOL. N5 will smoke a G2, most likely get better battery life despite the size, and HOPEFULLY take just as nice of pictures (albeit at 8MP). Like you mentioned, it's all in the software. They're really two different devices, not like the N4 and Optimus G. I'd take a 5" screen in a smaller than N4 form factor with "normal" buttons any day of week and twice on Sunday.

Me my partner and daughter all got nexus 4 going to have to have nexus 5 for all too as I think I've made a rod for my own back lol

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Good for them. I was gonna support them in Q4 by buying a G2 but I don't think my S2 can make it till black Friday or Even Nov 8 when the phone gets released to sprint. My N4 is still in great shape and holds charge really well after a year.

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I bought G2 several days ago. Love it, but hate the heat very much. Hope the healthy revenue can make LG produce better devices with very reasonable price like G2.

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I am working for one of the 3 mobile operators in Lithuania. Well, LG outsold Samsung about 10:1 in past quarter. They offer very good price for their products. By the way, I am Samsung user, but considering to jump to Lg G2 very strongly. It is insane, when Samsung S4 is selling for about 815 USD, when Lg G2 price is 675 USD here.

The g2 rocks. I haven't been this enthusiastic about a phone since my first iPhone (3g). galaxy s4 was my first dip into android and g2 was the icing on the cake. My wife still has her s4 and I can't believe I actually believed amoled was great. every time I pick up her phone or see her battery life I pinch myself. S4 really is kinda crappier compared to g2. I still find it amusing how most my friends still have an iPhone and plan to "upgrade" to the new "thump print" phone. They fear change and tell me my phone is too large?? Apple appeased the feeble minded.

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