Samsung Electronics’ (SSNLF) Q3 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Robert Yi – Senior VP, Investor Relations

It´s a tough operating environment in mature markets

“third quarter, the total revenue was KRW 47.8 trillion, a 7.5% year-on-year decline. This decrease was mainly due to the Note 7 issue, despite the increase of sales in the memory and OLED businesses.”

Currencies are having a effect

“In this quarter’s strengthening of the Korean won against the major currencies such as U.S. dollar and euro had a negative impact on the operating profit quarter on quarter. We figured it’s approximately KRW 700 billion effect, mostly on the component business.”

Kyeong Tae Lee – VP, Mobile Communications business

Mobile communication slightly down

“Our earnings for the mobile communication business declined significantly Q-on-Q due to the Galaxy Note 7 issues. However, with the strong sales of our existing models including the Galaxy S7 and S7 Edge, our smartphone shipments have only slightly decreased Q-on-Q.”

Mobile phone demand expected to to increase

“Market demand for both smartphone and tablet is expected to increase Q-on-Q as we enter the year-end peak season. For the mobile communication business, we will push forward to achieve the business earnings at a similar level to the same period in the previous year by focusing on the sales of the Galaxy S7 and S7 Edge, which have shown continuous demand and stable profitability.”

The S7 might be their best yet in sales in launch year

“in the third quarter, yes, actually, we’ve seen our S7 sales to maintain a strong sales and we think that the S7 will be able to greatly surpass the previous Galaxy S series in terms of full-year sales. Actually, in all of our Galaxy S series, the S7 probably will be recording the highest sales in the launch year.”