Lenovo Achieves Record Revenue of $51bn

Lenovo posted record fiscal year results with revenue reaching all time high of US$51 billion, up 12.5% year-on-year. Intelligent Transformation strategy drove PTI jump to US$856 million, up more than four times at 459% YOY, and nNet income is US$597 million, an increase of US$786 million from last year.

The full-year performance included a strong fourth quarter characterized by improving revenue and profit across all businesses. Revenue grew by 10% year-on-year and reached US$11.7 billion. Pre-tax income was US$180 million, up almost four times year-on-year (US$143 million, +389%) and net income was US$118 million (up US$85 million, +261%).

Basic earnings per share for the full year were 5.01 US cents or 39.2 HK cents, and for the fourth quarter the figure was 1.00 US cents or 7.85 HK cents. Lenovo’s Board of Directors declared a final dividend of 2.78 US cents or 21.8 HK cents per share for the fiscal year ended March 31, 2019.

“Lenovo’s solid financial performance is the result of persistent execution of our transformation strategy. At a time of great global change we continue to focus on how we ‘intelligently transform’ ourselves and enable customers around the world successfully to do the same. I am proud of our strong results and confident in how we will climb to new heights in the future,“ said Yang Yuanqing, Lenovo Chairman and CEO.

The Intelligent Devices Group (IDG) continues to lead the industry. Driven by Smart IoT strategy, it saw revenue grow by almost double digits for the full year (up 9.9%) and pre-tax income more than doubled (109%) year-on-year to US$1,843 million for the same period.

The PC and Smart Devices group (PCSD) delivered a record full year revenue of US$38.5 billion, with pre-tax income of US$1.98 billion. Through customer innovation, Lenovo is the #1 PC company in the world, according to IDC, with record market share of 23.4% for the fiscal year and remains the fastest growing among the top five players (+9.5% year-on-year).

The second IDG business unit, the Mobile Business Group (MBG), improved pre-tax income by US$464 million year-on-year. It was profitable starting from the second half of the year thanks to a clear focus on selected markets, a competitive product portfolio and expense control.

The Data Center Group (DCG) achieved the fastest year-on-year growth since the acquisition of the x86 server business, growing 37% with record full year revenue of US$6.02 billion. This was led by strong growth of the Hyperscale and Software Defined Infrastructure, which had revenue growth of 240% and 96% year-on-year respectively.

Lenovo remains #1 in the world in performance with 139 world records, #1 in x86 reliability and customer satisfaction according to ITIC (Information Technology Intelligence Consulting), TBR (Technology Business Research) and other industry benchmarks, and the #1 provider of supercomputers in the TOP500 list. During the course of the year, the Lenovo Capital and Incubator Group successfully divested interests in three investments and contributed US$107 million to the group’s pre-tax income. For the full fiscal year, revenue from Software & Services reached US$2.4 billion, up 18.9% year-on-year.