Samsung Clocks 8% Revenue Decline In Q4 Due To Softness In Semiconductor & Smartphone Businesses; Expects Recovery In Second Half

Samsung Electronics Co, Ltd SSNLF reported a fourth-quarter FY22 revenue decline of 8% year-on-year to KRW 70.46 trillion.
Semiconductor businesses revenue was KRW 20.07 trillion, down 24% Y/Y due to falling memory prices amid soft customer sentiment.
Samsung Display Corporation (SDC) reported revenue of KRW 9.31 trillion, up 3% Y/Y as mobile's market demand contracted, partially offset by a focus on high-end OLED products for smartphones and sales of QD-OLED panels.
The MX and Networks businesses had revenue of KRW 26.90 trillion, down 7% Y/Y due to sluggish demand for smartphones. The Networks Business posted an increase in revenue led by domestic demand for 5G installations and expansion in overseas businesses.
The Visual Display and Digital Appliances businesses posted KRW 15.58 trillion in revenue, up by 2% Y/Y as demand for the TV market declined in developed markets.
The Device eXperience revenue declined by 4% Y/Y to KRW 42.71 trillion.
The operating profit declined from KRW 13.87 trillion to KRW 4.31 trillion, mainly due to a decline in the semiconductor business.
The capex reached KRW 20.2 trillion, including KRW 18.8 trillion spent in the semiconductor division.
The capital expenditures in 2022 reached a total of KRW 53.1 trillion, including KRW 47.9 trillion for semiconductors.
Samsung expects a market demand recovery in the second half of 2023.
The semiconductor business will expand the proportion of advanced nodes and products.
Earnings at SDC's mobile panel business will likely be robust.
The Networks Business will likely maintain revenue growth by actively responding to overseas businesses and reinforcing technology leadership in 5G core chips.
For the Digital Appliances Business and Device eXperience divisions, the company will continue to enhance the competitiveness of premium products.
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