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LG's mobile division sees Q1 FY12 revenue down 14% to $2.2 billion

Profits strongly up quarter-on-quarter though

LG's mobile division sees Q1 FY12 revenue down 14% to $2.2 billion
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A better product mix and rising smartphone sales resulted in LG's (SEO:066570) mobile division tripling its profits quarter-on-quarter according to the firm's Q1 2012 financial report.

In all, the South Korean manufacturer's mobile business made an operating profit of KRW 39 billion (around $34.5 million) across the quarter.

It highlighted its increased smartphone revenue thanks to strong sales of its Optimus LTE and Optimus Vu in its home market.

Nonetheless, while profits were up from Q4 2011, overall revenues have declined 14 percent year-on-year to KRW 2.5 trillion (around $2.2 billion) owing to slowing feature phone sales.

The gap they leave behind will be filled as LG attempts to strengthen its smartphone line-up in Q2 2012, with the introduction of the firm's new L-Style series and quad-core smartphones.

Smart growth for smart TVs

Similar growth is expected in LG's home entertainment division.

Operating profit was KRW 217 billion (around $192 million) across the quarter – up from the KRW 82 billion ($73.1 million) amassed during the same period in 2011.

Sales in the business declined by 6.8 percent to KRW 5.3 trillion ($4.7 billion) due, in LG's view, to the "sluggish European economy", though the firm still decribed its overall performance as "strong".

Further growth is expected across the summer thanks to sporting events, though current growth is currently being fuelled by high demand for smart TVs in the Korean market.

Of its overall business, LG claims to have "turned a corner", posting a a net profit of KRW 243 billion ($214.9 million), with quarterly revenues hitting KRW 12.2 trillion ($10.8 billion).

[source: LG]

Keith Andrew
Keith Andrew
With a fine eye for detail, Keith Andrew is fuelled by strong coffee, Kylie Minogue and the shapely curve of a san serif font. He's also Pocket Gamer's resident football gaming expert and, thanks to his work on PG.biz, monitors the market share of all mobile OSes on a daily basis.