LG Electronics has reported a 9.9% year-on-year decline in its Media Entertainment Division, which encompasses the majority of the Company’s entertainment products sold in Australia, including OLED TVs, LG Gram notebooks, and X Boom audio systems. The division posted losses of A$322 million in the quarter.

The South Korean company is facing several challenges in Australia, including allegations of bullying involving a senior direct report by its local Managing Director.

In its latest financials, released late Friday, LG cited “stagnant demand for TVs and other hardware, as well as intensified competition” as the main drivers of the decline, particularly from rivals such as Samsung and Hisense in the Australian market.

Operating income fell both quarterly and annually, with management pointing to aggressive competition as a key factor.

Looking ahead to the peak buying season, which includes Black Friday, LG Australia is investing in direct online sales to boost profitability but is forecasting continued “demand stagnation.”

Globally, LG warned that consumer sentiment may weaken and that the market faces “macroeconomic uncertainties, including rising protectionism and unclear timing and scope of interest rate cuts.”

As part of its strategy to improve profitability, the company is expanding the capabilities of its WebOS software to gather more confidental consumer data from its products which is then sold to third parties. It’s also used to push advertising to LG TV, even beore you choose a program to watch.

LG claim that they plan to continue growing its subscription and direct-to-consumer online businesses, a move that has reportedly caused friction with some retail partners.

In the broader appliance market, which grew 4.7%, management said the outlook remains cautious, noting that “the home appliance market is expected to remain challenging due to sluggish demand recovery and intensified competition.”

For the third quarter, LG Electronics reported revenues of A$4.94 billion alongside the A$322 million operating loss, which was further impacted by increased marketing investments aimed at countering intensifying competition. No separate reporting was provided for the Asia Pacific region.