Samsung and LG have announced their second quarter financial reports for 2021. Let’s see if South Korean companies have increased their revenues this year. Here are the details.
South Korean technology giants Samsung and LG announced their earnings for the second quarter of 2021. Both companies managed to experience increased profits for this quarter. LG’s preliminary earnings results for the previous quarter surpass the company’s first-quarter results, revealing the highest quarterly revenue in its history.
Samsung and LG added revenue to revenue
LG reported provisional consolidated revenue of KRW 17.1 trillion, up 48.4 percent year on year, and operating profit of KRW 1.1 trillion, up 65.5 percent year on year, in the second quarter of 2021. The company’s home entertainment unit is expected to report solid earnings as OLED TV sales soar.
LG’s mobile communications unit will be reported as discontinued operations in the company’s second-quarter income statement after the company confirms it will exit the smartphone business by the end of July. LG also said earnings for the first quarter of 2021 will also be adjusted to reflect this change.
Samsung expects revenues of KRW 63 trillion, up 18.9 percent year on year, and operating profit of KRW 12.5 trillion, up 53.37 percent from a year ago. The memory chip business is said to be the reason for the surge in profits amid the coronavirus pandemic, which has more than made up for falling smartphone sales.
These companies did not disclose the performance of each business segment. When it releases its full earnings results later this month, it will also reveal the exact amount of profit and segment-wise results.
Despite the coronavirus pandemic and LG’s withdrawal from the phone business, it is very pleasing that the two giants are adding revenue to their income. Probably at the end of 2021, these revenues will continue to increase and make companies smile.