File image: Samsung. (Reuters).

CAPE TOWN - Samsung Electronics announced their latest earnings which shows that the technology company posted R695.1 billion in consolidated revenue and R179.5 billion in operating profit for the first quarter of 2018.

The company's total revenue grew approximately 20% year-on-year (YoY) and the Operating profit for the quarter saw an increase of R65.4 billion.

According to the report,  all in all, the operating margin in the first-quarter was 25.8%, up 6.2 percentage points YoY. 

According to the company, this was “primarily led by Samsung’s Memory Business and increased sales of its flagship mobile products, including the Galaxy S9.”

“System LSI and Foundry businesses contributed to first-quarter earnings backed by the strong demand for chips used for smartphones and crypto-currency mining”.

The report also shows that in the mid to long-term, the company plans to strengthen its business capabilities by " delivering differentiated technology in the component business and solidifying its leadership in cutting-edge technologies such as AI and 5G". 

"The company believes opportunities will widen for the set business, as digital devices become increasingly connected".

In the medium to long-term, the upcoming FIFA World Cup 2018 event is expected to drive up TV sales says Samsung. 

“Looking to the second quarter, TV market demand is projected to deliver YoY growth, driven mainly by demand momentum from the major global soccer event and growth in emerging markets. Samsung will aim to improve results by expanding sales of new models, particularly during the soccer competition", said Samsung. 

Total capital expenditure in the first-quarter was R98.7 billion including R82.6 billion for the Semiconductor Business and R9.1 billion for the Display Panel segment.

"For 2018, Samsung will continue to focus on strengthening premium sales in advanced markets, reinforcing its B2B business for built-in appliances and system air conditioners and expanding its online business", said the report. 

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- BUSINESS REPORT ONLINE