On January 31, 2025, Samsung Electronics reported its fourth-quarter financial results, revealing better-than-expected revenue but a significant drop in operating profit. The company’s revenue reached 75.8 trillion Korean won, surpassing its own guidance, while operating profit fell to 6.5 trillion won, reflecting a nearly 30% decline from the previous quarter.
- Samsung reports better-than-expected Q4 results
- Revenue increased 12% year-on-year
- Operating profit fell nearly 30% QoQ
- Annual revenue reached second-highest on record
- Future growth focused on AI smartphones
- Plans to enhance product advantages in 2025
Samsung Electronics, a leader in memory chip manufacturing and the world’s second-largest smartphone maker, provided insights into its financial performance for the fourth quarter. Revenue increased by approximately 12% year-on-year, while operating profit saw a significant year-on-year growth of about 130%. However, the operating profit of 6.5 trillion won fell short of analyst expectations, which had forecasted 6.8 trillion won.
Key financial figures for the fourth quarter include:
- Revenue: 75.8 trillion Korean won vs. expected 75.4 trillion won
- Operating profit: 6.5 trillion Korean won vs. expected 6.8 trillion won
For the full year, Samsung reported total revenue of 300.9 trillion won and an operating profit of 32.7 trillion won. In 2023, the company had an annual revenue of 258.94 trillion won and an operating profit of 6.57 trillion won. Despite the quarterly decline, Samsung noted that its annual revenue was the second-highest on record, only surpassed by 2022.
Looking ahead, Samsung indicated that earnings might be constrained in the current quarter due to ongoing weakness in the semiconductor sector. However, the company plans to focus on growth through advancements in AI smartphones and other premium devices. Samsung aims to enhance its technological and product advantages in AI and meet future demand for high-value products in 2025.
In summary, Samsung’s fourth-quarter results highlight a mixed performance with strong revenue growth overshadowed by a decline in operating profit. The company remains optimistic about future growth driven by innovations in AI and premium products.
