Samsung's IT and Mobile Division Profit Grew over 65 Percent in Q1
Samsung reported its highest first-quarter operating profit in three years. The company had total consolidated revenue of KRW 65.39 trillion ($58,99 billion), a 6 percent increase from the previous quarter.
Operating profit increased 4 percent from the period to KRW 9.38 trillion as sales of smartphones and consumer electronics outweighed lower earnings from semiconductors and displays. Operating profit for its IT and Mobile Communications Division grew 65.7 percent year-on-year to KRW4.39 trillion, accounting for 46.8 percent of Samsung’s total operating income compared with 41.2 percent in the first quarter of 2020. Revenue rose 12.3 percent to KRW29.2 trillion.
The network business maintained a strong performance as 5G network rollouts continued to expand globally. Group net profit of KRW7.14 trillion was a record Q1 high, up 46.4 percent, on revenue of KRW65.4 trillion, an 18.2 percent rise. Smartphone and consumer electronics sales offset lower semiconductor and display division earnings.
The vendor warned again about the potential impact of component shortages on flagship model availability and earnings in the current period. Kim Sung-Koo, vice president of the Mobile Communications Business, said Samsung is working to minimise the impact of shortages by rebalancing its global supply chain management capabilities. The company forecasts the mobile market to recover to pre-COVID-19 levels in H2 on an annual basis, driven by a gradual economic rebound and full-fledged expansion of the 5G market.