LG, withdrawing from the phone industry, announced the results of the second quarter of 2021. The South Korean company managed to double its revenues this quarter.
South Korean technology giant LG has announced that it is surprisingly withdrawing from the phone business in the past months. The company, which withdraws from the mobile field, which is constantly losing, has today published its financial report for the second quarter of 2021. It is clearly seen in this quarter that LG’s critical decision in the mobile field has increased its revenues.
LG stands out with revenue growth of up to 50 percent
The company, which is Samsung’s biggest competitor in its homeland, posted a 48.4 percent increase from the same quarter of the previous year and provisional consolidated revenue of KRW 17.1 trillion, the highest quarter revenue in the company’s history. Operating profit of KRW 1.1 trillion is expected to be 65.5 percent higher than in the second quarter a year ago.
With the Mobile Telephony Business Unit officially closing at the end of the month, the unit’s earnings will not be reflected in this quarter’s earnings report. It will also be treated as discontinued operating losses. Earnings for the first quarter of 2021 will also be adjusted to reflect this change, at KRW 17.8 trillion in revenues and KRW 1.8 trillion in operating profit. These figures are provisional consolidated earnings based on K-IFRS, available as a service to investors before LG’s final earnings results, including net income. Details about LG’s other units will be officially announced later this month.
It was an important step for the future of the company that LG pulled out in the mobile field and focused on areas where it was better. Apparently, this decision reflected positively on the company. It is not known what will happen in the future, but we think that LG will not enter the mobile space for a long time. Let’s say that if the company sells its patents and technologies, it will increase its income 2-3 times. However, the company will not go this way for now.