LG Appliances and TV Earnings at Record Levels but No G5 Boost for Mobile Division

LG Appliances and TV Earnings at Record Levels but No G5 Boost for Mobile Division

South Korea’s LG Electronics Inc on Thursday posted its highest quarterly operating profit in two years, thanks to record appliances and television earnings that offset another loss for the mobile division.

The world’s second-largest TV maker behind SamsungElectronics Co Ltd said in a regulatory filing its April-June profit more than doubled from a year earlier to KRW 585 billion ($521 million), matching its earlier guidance.

LG said it expected July-September operating profit to be higher than the KRW 294 billion profit it reported a year earlier, while revenue would be similar to the 14 trillion won recorded in the third quarter of 2015.

Operating profit for the appliances division jumped 49 percent from a year earlier to a quarterly record of KRW 433.7 billion, the company’s top earner for the seventh straight quarter as sales of premium products continued to support margins.

LG’s TV division swung to a profit of 356.7 billion won, also a quarterly record, boosted by sales of high-end televisions and improved cost structure amid declining panel prices.

The mobile business continued to struggle, however, reporting a KRW 153.5 billion operating loss, the fifth straight quarter in the red as sales of the flagship G5 fell short of expectations.

The company in April guided for a sharp second-quarter rebound in mobile earnings on G5 sales. The phone was received positively by critics for allowing users to upgrade functions such as the camera through attachable modules.

But initial manufacturing problems undermined early momentum for the G5, analysts said, leading to disappointing sales.

The firm said the third quarter would remain difficult for the business though its performance would improve as new products launched.

LG’s second-quarter revenue rose 0.6 percent to KRW 14 trillion, matching its guidance for earlier this month.

© Thomson Reuters 2016

Tags: Home Entertainment, LG, LG Display, LG G5, Mobiles

The Division Breaks Ubisoft’s Day 1 Sales Records

The Division Breaks Ubisoft's Day 1 Sales Records

Tom Clancy’s The Division – Ubisoft’s latest open world role-playing shooter – might have taken its time getting to consumers, but it’s selling like hotcakes, the company claims.

(Also see: Hitman, The Division, and Other Games Releasing This March)

The game sold more copies in the first 24 hours than any other Ubisoft title in the publisher’s history, Giancarlo Varanini, communications manager for Ubisoft wrote in a post on the official blog. He added to say that the title has also set “new, single-day company records” across the board, for the PlayStation 4, Xbox One, and the PC without sharing any numbers.

“The launch of The Division is a tremendous achievement for Ubisoft, and demonstrates our unrivalled capacity to create fantastic new game brands and transform them into entertainment blockbusters,” co-founder and CEO of Ubisoft Yves Guillemot said in a statement. “This is a momentous day for Ubisoft, but more importantly it marks the start of millions of players’ enduring engagement in The Division’s game world, which we are confident they will love.”

Tom Clancy’s The Division is set in post-pandemic New York City, with a classified unit of tactical agents tasked with bringing stability to a neighbourhood devoid of basic services and any government control.

(Also see: New to The Division? Try These 5 Tips)

The Division is an all-online affair, and will regularly receive updates like space shooter Destiny. “Two free updates, available to all players, will hit in the months following launch. Beginning in April, the Incursions update will add an endgame activity designed for squad play, challenging teams of four players to face nigh-unstoppable enemies for high-level loot,” Ubisoft editor Mike Reparaz said of the first update for the game.

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