Lenovo's net profit jumps as smartphone sales surge

|About: Lenovo Group Ltd. (LNVGF)|By:, SA News Editor

Lenovo's (LNVGF) FY net profit leapt 29% to $817M and met forecasts, while revenue climbed 14% to $38.71B.

Personal computer shipments grew 5% to 55M units despite the broader market contracting.

Lenovo's smartphone shipments surged 72% to over 50M units, "driven by the strong growth in China and emerging markets."

Revenue at Lenovo's mobile Internet and digital-home business - which develops the company's smartphones - soared 86.1% to $5.7B.

However, Lenovo's Chinese sales rose just 1.3% to $14.7B and accounted for 38% of the company's overall revenues. Operating profit was $788M out of a total of $1.05B. Lenovo's operating margin in the country increased 0.9 of a percentage point to 5.4%.

EMEA sales +27.1%, Americas +31.1%.

Q4 net profit grew 25% to $158.3M but missed consensus of $163.6M. Sales increased to $9.4B from $7.83B and topped forecasts of $9B.