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(LEAD) Samsung Q1 net up 13.55 pct on strong Galaxy S7 sales

All Headlines 09:06 April 28, 2016

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By Kang Yoon-seung

SEOUL, April 28 (Yonhap) -- South Korean top tech giant Samsung Electronics Co. said Thursday its net profit advanced 13.55 percent on-year in the first quarter, apparently helped by robust sales of its flagship smartphones.

Net income came to 5.25 trillion won (US$4.56 billion) in the January-March period, compared with 4.62 trillion won from a year earlier, Samsung said in its regulatory filing.

Sales gained 5.65 percent on-year to 49.7 trillion won in the first quarter, and its operating profit moved up 11.65 percent to 6.67 trillion won. The finalized results were almost in line with the earnings guidance released earlier this month.

Samsung said the IT and mobile communications business, which covers smartphones, posted an operating profit of 3.89 trillion won, up 42 percent from a year earlier.

It said the performance was attributed mainly to the strong sales of the Galaxy S7 series, which went on sale in March.

Samsung added the division's profitability also improved as it streamlined the budget smartphone models.

Samsung has been suffering from sluggish performances of its mobile division, especially the Chinese players that ate into some of its shares.

The company said the Galaxy S7 is gaining popularity around the globe, including in North America and Europe, adding shipments are better than they were for its predecessor.

The Galaxy S7 and Galaxy S7 Edge smartphones, first showcased at a trade fair in Spain in February, come with improved batteries, and are water and dust resistant. The company also brought back the micro SD card slot that had disappeared in the Galaxy S6 series.

The company's chip business, which had emerged as the new main source of profit for Samsung last year amid poor smartphone sales, posted an operating profit of 2.63 trillion won, down 10 percent from the 2.93 trillion won posted a year earlier.

Shares of Samsung Electronics closed 0.31 percent higher on the main bourse on Wednesday, when the KOSPI shed 0.21 percent. The latest report of its earnings was issued before the opening of the stock market Thursday.


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