Samsung Electronics reported its financial results for the second quarter.
Operating profits reached 14.9 trillion won, 7 million won higher than expected.
Although the semiconductor business continued its upward trend with over a 50 percent operating profit margin, the smartphone business reported weak sales.
Han Sang-yong has more.
Before the stock market's opening today, Samsung Electronics announced that its operating profit for the April to June period came in at 14.87 trillion won.
This represents a 100 billion won or 5.7 percent increase compared to the same period a year ago.
But the latest results put the brakes on the upward trend where Samsung logged record results since the second quarter of last year.
Operating profits dropped more than 700 billion won from the previous quarter when it hit its record high.
Its quarter-on-quarter operating profit dipped for the first time in seven quarters.
Revenue fell three percent from the previous quarter and four percent from the previous year to remain at 58.48 trillion won, falling below the 50 trillion won for the first time after five quarters.
Its flagship semiconductor division continued to achieve strong results.
Revenue reached around 22 trillion won and operating profit stood at 11.61 trillion won.
The second quarter operating profit for the chip business beat the previous record by 60 billion won, with its operating profit margin at 52.8 percent.
Meanwhile, operating profit and revenue for the IT and mobile businesses declined from the previous quarter as the Galaxy S9 delivered weaker-than-expected results.
The display business logged 140 billion won in operating profits due to weak market conditions while the TV business logged higher operating profits from last year thanks to brisk sales of high value products.
Observers expect that the upward trend in the semiconductor business and rising demand in OLEDs will help Samsung deliver yet another record result in the third quarter, depending on the success of the Galaxy Note 9.
Reporting for Yonhap News TV from the newsroom.
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