Samsung Electronics reported a fall in fourth-quarter net profit to KRW 5.35 trillion from KRW 7.30 trillion a year earlier. Operating profit dropped to KRW 5.29 trillion from KRW 8.31 trillion, and revenues declined to KRW 52.73 trillion from KRW 59.28 trillion a year ago.
The lower results were due to a sharp fall in sales at its mobile phone business, where quarterly revenues were down 23 percent year-on-year to KRW 25.02 trillion. Operating profit at the communications division fell to KRW 1.96 trillion from KRW 5.47 trillion a year ago.
Samsung reported a small decline in its smartphone shipments compared to the third quarter, while its average selling price and profitability improved over the same period thanks to a higher share of high-end phones like the Note 4. Tablet shipments were up compared to Q3, and Samsung also increased revenues from network equipment. The company expects a weaker phone and tablet market in Q1 due to lower seasonal demand. Samsung itself will try to improve earnings and grow smartphone shipments, helped by new models in the A series.
Samsung also posted flat sales and lower profits from consumer electronics in Q4 compared to a year earlier, although reported strong year-end demand for TVs. Its semiconductor operations improved results compared to a year ago, driven by demand for more advanced memory chips.
Despite the weaker quarterly results, Samsung raised its final dividend to KRW 19,500 per share from KRW 13,800 a year earlier. The company said it also spen almost KRW 2.5 trillion repurchashing its own shares in the past two months.
