LG today announced its financial results for 2014 that saw its profit increase by a staggering 125 percent from 2013. The company attributes a successful 2014 to its smartphone division, which helped in improving its profitability.

For the full calendar year of 2014, LG’s net profit increased by 125 percent to KRW 501.40 billion (USD 474.81 million) on revenues of KRW 59.04 trillion (USD 55.91 billion), which in itself increased by only 1 percent. In the last quarter of 2014, LG posted a revenue of KRW 15.27 trillion (USD 14.06 billion) with an operating profit of 275.1 billion (USD 253.31 million). However, due to the write-off of its plasma TV business, LG suffered a net loss of KRW 205.7 billion (USD 189.41 million) in the last quarter of 2014.

The company’s smartphone division fared well in 2014 and posted a 16 percent increase in annual revenue to KRW 15.06 trillion (USD 14.26 billion). This was largely due to the increase in the smartphone shipment of the company, particularly in North America, where it saw an increase of 78 percent in Q4, 2014 compared to the quarter before it. In Q4, 2014 itself, the smartphone division posted a revenue of KRW 3.78 trillion (USD 3.48 billion) — an increase of 5 percent on a YoY basis.

The company also managed to ship 59.1 million smartphones in 2014 — an increase of 24 percent from 2013. Nonetheless, LG expects 2015 to be challenging with greater competition from other OEMs and will therefore concentrate on improving its brand power and focus on key markets.

Samsung, the biggest Korean smartphone manufacturer, also posted its earings report for Q4, 2014 earlier today, which saw a sharp decline in its smartphone shipments and profit.