Samsung UK: TVs boost profit despite smartphones losing ground

The rise in popularly in premium TVs helped Samsung’s UK profit surge during its latest financial year despite the electronics giant losing ground in the smartphones market.

The UK arm of Samsung has reported a pre-tax profit of £135.3m for 2023, up from £126.8m, thanks to it boosting its market share in high-end televisions.

The Surrey-headquartered company’s revenue dipped slightly from £3.66bn to £3.62bn in the year, according to newly-filed accounts with Companies House.

In the UK, the total market for smartphones grew by 0.5 per cent in 2023 compared to 2022 in value terms. However, Samsung’s market share decreased by 1.2 per cent year on year.

The total TV market shrunk by 11.5 per cent in 2023 but Samsung said it increased its share in the more than $1,500 category from 34.8 per cent to 39.6 per cent.

A statement signed off by the board said: “The continued effects on the global economy following Covid-19 and the Ukraine crisis resulting in the cost-of-living crisis were evident within 2023.

“Despite the many challenges faced within the year, the company has ensured Samsung products availability to its customers and consumers during this time.

“While continuing to focus on premium devices, the company proactively sought to develop consumer demand for the company’s product range in static of declining markets through various promotions.”

The company added that the doubling of Samsung Capital’s funding in 2023 compared to 2022 and the continued rise in interest rates es contributed to an increase in its financial income, resulting in a rise in net profit.

During the year interim dividends of £122.4m and £150m were paid to its parent company.

Samsung’s UK and Ireland revenue sipped from £3.52bn to £3.46bn in the year but use from £48.5m to £49.7m in Europe and from £97.3m to £108.6m in the rest of the world.

During the year the average number of people employed by the business rose from 1,316 to 1,377.

Samsung Electronics is the flagship unit of South Korean conglomerate Samsung Group.

In July Samsung Electronics revealed that it expected its profit for the three months to June 2024 to surge 15-fold compared to the same period last year.