High Sales of Samsung LED TVs Spurs Growth for Digital Media & Appliances Business

Feb 10, 2012

Digital Media & Appliances Business recorded USD 14.36 billion quarterly revenue and operating profit of USD 508.5 million

Dubai, United Arab Emirates – February 06, 2012 – Samsung Electronics Co., Ltd. today announced that Samsung’s Digital Media & Appliances (DMA) business, which encompasses Visual Display, Digital Appliances, IT Solutions, and Digital Imaging, posted global revenues of USD 14.36 billion for the fourth quarter of 2011, up 4 percent year-on-year. The businesses registered an operating profit of USD 508.5 million in the fourth quarter. Samsung’s reinforced lineup of LED TVs, including premium models for advanced markets and region-specific models for emerging markets, has improved quarter-on-quarter sales. “Since the launch of Samsung’s Smart TV range, we have managed to bring in strong numbers every quarter. Samsung’s aim to outperform the market and enhance profitability through marketing and sales expansion of premium products such as LED TVs and Smart TVs supported by customized TV applications has materialized into the great numbers we saw for DMA in the fourth quarter,” said Vinod Nair, General Manager of CTV at Samsung Gulf Electronics. In the Gulf region, Samsung Smart TVs currently hold 45 percent market share. Samsung’s dominant position in the region is spurred by the demand for digital convergent products, consumer adaptability towards new technology, and locally relevant content and applications found in Samsung’s Smart Hub. The Smart features that constitute the Smart Hub include: AllShare, Search All, Samsung Apps, Second TV, Web Browser and Social TV. “In the Gulf market we recorded a 21 percent increase year-on-year in digital media and appliances’ sales for the fourth quarter of 2011,” he added. For the year, the Digital Media business’s combined global revenue totaled USD 51.82 billion, with operating profit up 229 percent on-year to USD 928.67 million. Sales of LED TVs grew strongly during the fourth quarter on traditionally high seasonal demand, achieving 40 percent growth on-quarter. Against this, Samsung outperformed the market by focusing on sales of premium models, shipping over 55 percent more LED TVs compared to the previous quarter. In 2012, weak seasonality in the first quarter will see an on-quarter decrease in demand, although overall market growth is expected for the year, driven by strong growth momentum in emerging markets. In developed markets, Samsung will leverage its premium LED television offerings to lift sales as LED TV sales rise to account for more than 60 percent of the global flat panel TV market in 2012. Overall, Samsung posted global revenues of USD 42.19 billion on a consolidated basis for the fourth quarter, a 13-percent increase year-on-year. For the quarter, the company posted consolidated operating profit of USD 4.72 billion, representing a 79-percent increase year-on-year. Consolidated net profit for the quarter was USD 3.56 billion. The fourth quarter global results brought Samsung’s full year 2011 revenue to an all-time high of USD 147.19 billion, up 7 percent from the previous year. Global Net income registered USD 12.24 billion, down 15 percent compared with 2010, while operating profit was USD 14.49 billion, a 6-percent on-year decline. -ENDS- About Samsung Electronics Co., Ltd. Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2010 consolidated sales of US$135.8 billion. Employing approximately 190,500 people in 206 offices across 68 countries, the company operates two separate organizations to coordinate its nine independent business units: Digital Media & Communications, comprising Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, and Digital Imaging; and Device Solutions, consisting of Memory, System LSI and LCD. Recognized for its industry-leading performance across a range of economic, environmental and social criteria, Samsung Electronics was named the world’s most sustainable technology company in the 2011 Dow Jones Sustainability Index. For more information, please visit www.samsung.com