HONG KONG (Reuters) – Chinese computer maker Lenovo Group (0992.HK) saw a 21 percent increase in net profit for the second quarter, which exceeded expectations, thanks to more premium computers sold at that time.
The Lenovo Logo can be seen on this illustrative photo on January 22, 2018. REUTERS / Thomas White / Illustration
Net income for the quarter ending September amounted to $ 168 million, compared to $ 139 million a year ago, and according to estimates by Refinitiv, an average estimate of $ 118 million from 9 analysts.
Revenue rose 14 percent to $ 13.38 billion, the highest quarterly yield in nearly four years, which helped improve the product range toward more commercial computers – a more lucrative category than consumer computers.
"The Group remains confident in its core business of computing and aims to grow revenue-generating revenues without jeopardizing profitability," Yang Yuanqing, Chairman of the Board of Directors and Chief Executive Officer, told the Hong Kong Stock Exchange.
"Lenovo will take advantage of industry consolidation and support the growth of high-growth segments such as Thin & Light, Visual and Workstations," said Yang.
Lenovo, which has lost the world's largest crown of computer manufacturers in HP Inc (HPQ.N) in 2017 said it returned to the top spot with 23.7 percent market share, according to IDC.
Worldwide PC shipments increased by 0.1 percent to 67.2 million units in the third quarter of this year, according to Gartner, with Lenovo's biggest share due to Fujitsu's computer-centric growth and joint venture.
Lenovo said subscription profits on its personal computer and intelligent devices grew year on year by 42 percent to $ 940 million in its first fiscal first half of April to September, a 5 percent profit margin before tax.
The strong core performance comes, even though Lenovo continues to fight smartphones in a strong competition environment. The company missed the March deadline to turn to the company.
The reported pre-tax loss on its mobile unit in the six-month period fell to $ 146 million from $ 337 million a year ago. Lenovo said its Motorola brand achieved global operating profit in the second quarter.
The loss in the data center enterprise group has fallen to $ 123 million, while revenue has risen 63 percent to $ 3.2 billion.
Lenovo's shares rose 4.8 percent to $ 5.85 for $ 5.444.
Reports from Sijie Jiang; Editing Muralikumar Anantharaman and Gopakumar Warrier