LG posts Q2 profit in spite of $132 million loss from the mobile unit

LG has announced its Q2 2016 earnings, recording an operating profit of $503.1 million (584.6 billion won) over revenues of $12.05 billion (14 trillion won). Strong sales of home appliances and TVs offset the mobile unit's operating loss of $132 million.

LG's mobile unit recorded a $170 million loss in the last quarter as well. The LG G5 managed to net a 12% increase in revenue from the previous quarter to $2.86 billion (3.33 trillion won), but the modular phone did not have the impact LG was hoping for. Shipments at 13.9 million units was a modest increase over the 13.5 million recorded in Q1 2016.

The brand noted that it met with "increased marketing expenditures and somewhat slow initial sales of G5 smartphone." Looking forward to Q3, LG is aiming for the V20 to boost sales in the high-end segment, with the K and X lineup of phones competing in the budget segment.

Elsewhere, the home appliance division posted a profit of $373.24 million (433.7 billion won). The TV segment recorded a $306.97 million (356.7 billion won) operating profit on revenues of $3.58 billion (4.16 trillion won), with LG witnessing a healthy increase in sales of high-end 4K TVs.