LG Electronics' Q2 profit misses market expectations on marketing costs

Source: Xinhua| 2017-07-07 15:35:08|Editor: huaxia
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SEOUL, July 7 (Xinhua) -- LG Electronics, South Korea's tech giant, saw its second-quarter operating profit miss the market expectations on the back of high marketing costs for smartphones, a regulatory filing showed Friday.

Preliminary figure for operating profit was 664.1 billion won (575 million U.S. dollars) in the April-June quarter. It was up 13.6 percent from a year earlier, but was down 27.9 percent compared with the previous quarter.

LG's second-quarter profit far missed market expectations of about 771 billion won.

Revenue rose 3.9 percent over the year to 14.46 trillion won in the quarter, but it was down 0.7 percent from the prior quarter. It was also lower than market consensus of about 15 trillion won.

The worse-than-expected earnings stemmed mainly from higher marketing costs for the newly launched G6 devices. The new smartphone's sales were estimated to have been lower than expected during the quarter.

Net income and detailed profits of each business unit will be announced later this month after external audits. Enditem