DHAKA: LG Electronics announced a sharp improvement in first-quarter net profit, to KRW 93 billion from KRW 22 billion a year earlier.

Operating profit rose to KRW 999 billion from KRW 806 billion, and the Korean company’s sales were up 1.2 percent year-on-year to KRW 14.3 trillion.

The improved profits came from its consumer electronics division, thanks to strong demand for larger TVs, as well as the joint venture LG Display and continued cost reductions.

The mobile division was still in the red, but showed a third consecutive quarter of improvement in the operating margin, to minus 0.3 percent.

Mobile revenues were up 6 percent from a year earlier to KRW 3.4 trillion. Smartphone shipments increased 19 percent from a year ago and 7 percent from Q4 2013 to 12.3 million.

The growth was driven by LTE handset sales, which rose 76 percent year-on-year, as well as demand for the high-end G2 and Nexus 5 phones. Sales in its home market were lower due to the regulatory ban on operator sales. 

Average selling prices were also under pressure from competition, LG said, reports telecompaper.com.

The company expects the price competition in the mass market segment especially to continue. However, its own growth should continue thanks to new models in the mid-range and high-end segments, such as the G3 and L Series III in Q2, as well as further improvement in costs.

BDST: 1641 HRS, APR 29, 2014