Enterprise IT/Software

Samsung expects Galaxy S5 and World Cup to boost growth

Software CBR Staff Writer

09:04, April 29 2014

The firm announces $7.5bn net profit in Q1.

Samsung Electronics expects to rally on the sales of its Galaxy S5 and high-end TVs to boost growth in the second quarter.

The South Korean giant earned net profit of 7.57 trillion won ($7.5bn) in the first quarter of 2014, an increase of 270 billion won from the previous quarter.

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The company's revenues, however, slipped 9% quarter-on-quarter to 53.68 trillion won, but gained year-on-year.

Samsung's IT and Mobile Communications (IM) division saw an 18% rise in operating profits from the previous quarter, due to "steady smartphone shipments, efficient execution on marketing expenditures and a positive impact from adjustments of one-off expenses".

Galaxy S5, introduced in the first quarter, is expected to beat the S4 in sales and help the company maintain "solid earnings" in the second quarter.

Samsung expects demand for display panels to increase, backed by a rise in the growth of premium smartphones, while sales of high-end UHD and curved TVs are anticipated to grow during the World Cup in Brazil.

Samsung Electronics' SVP and head of investor relations Robert Yi said: "We expect our overall earnings to improve starting from the second quarter, driven by improvements in the Display Panel segment and the Consumer Electronics division in conjunction with steady growth momentum in mobile and memory businesses."

Image: The sales of Galaxy S5 are expected to surpass those of S4 in the second quarter. Photo courtesy of Samsung Electronics.

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