LG expects robust second quarter growth, but spent too much on marketing
Investors may be disappointed when LG announces its second-quarter earnings as the chaebol estimates that it had an estimated operating income of ₩771 billion ($691.1 million). While that is an annual increase of 16.1 percent, the number compares to a ₩821 billion figure based on a Reuters trading house consensus. Full results are due at the end of this month.
LG had its winningest quarter in nine years during the winter season thanks to its premium SIGNATURE branding in home appliances and especially televisions. However, it decided to spend extra cash this quarter on marketing all of its properties, including smartphones — you may have seen Aubrey Plaza in the company’s latest promotional campaign for the G7 ThinQ.
Competitor Samsung has forecast a 5.2 percent jump in profits with downward drag due to slow Galaxy S9 sales.