Tag: Profit

07
Oct
2020
Posted in technology

Samsung Flags Near-60% Operating Profit Jump After Huawei Boost

Samsung Electronics flagged a leap of nearly 60 percent in third-quarter operating profits Thursday, as its mobile and chip business were boosted by US sanctions against its Chinese rival Huawei.

The South Korean tech giant said in an earnings estimate that it expected operating profit to reach 12.3 trillion won ($10.6 billion) for July to September, up from 7.8 trillion won in the same period last year.

The prediction would represent the firm’s biggest operating profit of any quarter for two years and was also ahead of analyst forecasts.

Samsung Electronics is crucial to South Korea’s economic health. It is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled conglomerates known as chaebols that dominate business in the world’s 12th-largest economy.

Its overall turnover is equivalent to a fifth of the country’s gross domestic product.

James Kang, senior analyst at Euromonitor International Korea, said Samsung’s rollout of its latest premium handset devices — the Galaxy Note 20 and the Galaxy Z Fold 2 — in August, coupled with strong sales of mid-range phones, led the firm’s third-quarter performance.

A Washington ban on foreign companies providing Huawei with US-origin technology, that came into effect on September 15 — cutting off essential supplies of semiconductors and software needed for making smartphones and 5G equipment — also provided a boost.

Kang Min-soo, an analyst at Counterpoint Research, said US sanctions against Huawei were becoming “a big factor” affecting the global smartphone market.

“For Samsung, it will be a good opportunity to increase market share in Europe, where it has been competing with Huawei in various price bands,” he added.

The firm’s memory business also benefited from the feud after Huawei rushed to stock up on Samsung-made semiconductors before the US restrictions kicked in.

“Huawei has stocked about

07
Oct
2020
Posted in technology

Samsung Electronics Flags 58.1% Jump In Q3 Operating Profit

Samsung Electronics flagged a nearly 60 percent rise in third-quarter operating profits Thursday, largely driven by strong smartphone sales boosted by US sanctions against its rival Huawei.

The South Korean tech giant said in an earnings estimate that it expected operating profit to be 12.3 trillion won ($10.6 billion) for July to September, up from 7.8 trillion won in the same period last year.

The prediction was in line with analyst forecasts.

Samsung was projected to post around 10.3 trillion won ($8.9 billion) in third-quarter operating profit, according to market researcher FnGuide.

Samsung Electronics is crucial to South Korea’s economic health. It is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled conglomerates known as chaebols that dominate business in the world’s 12th-largest economy.

Its overall turnover is equivalent to a fifth of the country’s gross domestic product.

Analysts say the firm’s strong third-quarter performance was largely led by its mobile business, which enjoyed a boost from US sanctions on Huawei.

A Washington ban on foreign companies providing Huawei with US-origin technology came into effect on September 15, cutting off essential supplies of semiconductors and software needed for making smartphones and 5G equipment.

Samsung Electronics is crucial to South Korea's economic health Samsung Electronics is crucial to South Korea’s economic health Photo: AFP / Jung Yeon-je

Kang Min-soo, an analyst at Counterpoint Research, said US sanctions against Huawei were becoming “a big factor” affecting the global smartphone market.

“For Samsung, it will be a good opportunity to increase market share in Europe, where it has been competing with Huawei in various price bands,” he added.

Looking forward, analysts said falling chip prices could put a damper on Samsung’s performance in the final quarter of the year.

Samsung is the world’s biggest manufacturer of memory chips and led the DRAM market with 43.5-percent share

07
Oct
2020
Posted in technology

Op-ed | Can SpaceX profit on certain Starlink launches?

It is no longer a surprise to industry observers that partial reusability, economies of scale and vertical integration have enabled SpaceX to achieve extremely low Falcon 9 launch costs, nor is it a surprise that SpaceX’s launch and satellite connectivity businesses are inherently linked, as the company takes advantage of its industry-low launch costs to orbit its own broadband constellation for a fraction of the competition’s launch capital expenditure.

It may however remain a surprise to some that Starlink is also linked to SpaceX’s Smallsat Rideshare program, revealed August 2019, and that SpaceX will further reduce the Starlink launch capex by manifesting paying customers as rideshare payloads on some Starlink launches. In doing so, it may even break even or make a profit on such Starlink rideshare missions, on the condition that it identifies and contracts enough rideshare customers to offset the cost of a launch.

QUICK DIVE INTO COST NUMBERS

It is likely that SpaceX is capable of achieving an approximately $30 million launch cost after a single reuse, and that it is capable of much lower costs for Starlink with subsequent reflights, especially with previously-flown fairings. SpaceX has flown the same booster up to six times, as demonstrated with an Aug. 18 Starlink mission. In early 2020, SpaceX Director of Vehicle Integration Christopher Couluris, mentioned “[the rocket] costs $28 million to launch it, and that’s with everything” and that reuse is what “is bringing the cost down.”

However, why would SpaceX show all their cards and offer lower launch prices as they already are the lowest bidder on the market in terms of specific price ($/kg) to all orbits? As the lowest bidder, SpaceX has no incentive to further reduce launch prices and it is only logical that it seeks to profit from this cost/margin advantage. Let

03
Oct
2020
Posted in technology

Vedanta’s Profit Tumbles as India Lockdown Hurts Output, Demand

(Bloomberg) — Billionaire Anil Agarwal’s Indian commodities conglomerate Vedanta Ltd. posted a 23.5% drop in quarterly profit as one of the world’s strictest lockdowns hit production and demand.



a man walking down a street next to a river: Police officers walk along an empty road during a lockdown imposed due to the coronavirus in Mumbai, India, on Monday, June 1, 2020. Despite a strict two-month-long lockdown, the outbreak in India’s financial capital has snowballed, with the city now accounting for nearly a quarter of India’s more than 4,700 deaths and more a fifth of India’s over 165,000 infections.


© Bloomberg
Police officers walk along an empty road during a lockdown imposed due to the coronavirus in Mumbai, India, on Monday, June 1, 2020. Despite a strict two-month-long lockdown, the outbreak in India’s financial capital has snowballed, with the city now accounting for nearly a quarter of India’s more than 4,700 deaths and more a fifth of India’s over 165,000 infections.

Group net income slumped to 10.33 billion rupees ($141 million) in the three months to June from 13.51 billion rupees a year earlier, the company said in a statement late Saturday. Sales fell 25.9% to 156.87 billion rupees.

Loading...

Load Error

Key Insights

Vedanta’s main businesses include zinc, aluminum and oil and gas, all of which have been hit by a slump in demand due to the coronavirus pandemicAgarwal’s London-based Vedanta Resources Ltd. is in the process of taking Mumbai-listed Vedanta private by buying out minority shareholders to simplify his investments.Vedanta Resources is in talks with banks for a further $600 million to finance the delisting after already securing $3.15 billion in loans and bonds, according to people familiar with the information.Vedanta had net debt of 247.87 billion rupees at the end of June.Vedanta’s Hindustan Zinc, also Asia’s most valuable zinc producer, reported a 23% drop in June-quarter profit on lower prices and production.India’s economy posted its worst slump in the three months ended June as disruptions caused by the Covid-19 outbreak brought Asia’s third-largest economy to a halt. Economists expect growth to shrink in the year through March 2021, in the first such contraction in more than four decades.

Market Reaction

Shares of Vedanta rose 0.4% on Thursday to close

29
Sep
2020
Posted in technology

Alibaba Expects First Profit From its Cloud Arm This Year

(Bloomberg) — Alibaba Group Holding Ltd. foresees its cloud services arm turning profitable for the first time this year, a milestone for the decade-old business that underscores how Asia’s largest corporation expects a return to pre-pandemic levels as China’s economy rebounds.

Loading...

Load Error

Alibaba’s shares rose as much as 4% in Hong Kong, their biggest intraday gain in over a month. Its internet computing business is growing roughly 60% at an annual revenue run rate of about $7 billion, Chief Financial Officer Maggie Wu told investors at an annual company conference. The unit should turn profitable in the year ending March, she said.

Cainiao, the logistics service Alibaba folded fully into its broader empire in 2017, should generate positive cash-flow on an operating basis over the same period, she added.

China’s most valuable corporation has invested billions in hosting computing for corporations over the cloud, while building a nationwide logistics network that can handle the billions of parcels its e-commerce business throws out. Achieving profitability will boost Alibaba as it tries to revitalize growth alongside a recovery in the broader Chinese economy. The e-commerce giant is riding a pick-up in consumer spending — particularly online — in a country among the first to recover from Covid-19.

“We typically spend 8 to 10 years incubating, nurturing and growing a new business,” Chief Executive Officer Daniel Zhang told investors. “We still regard ourselves to be in the nascent stage of the global cloud era.”

Like Amazon.com Inc.’s, Alibaba’s cloud service emerged from the computational power needed to handle billions of online shopping transactions to become one of its fastest-growing initiatives. The Chinese company today relies on the service, which competes globally with Amazon Web Services, Microsoft Corp. and Google, to underpin both its global expansion and forays into newer arenas such as