Samsung said in a regulatory filing that its January-March operating profit was 9.9 trillion won ($8.75 billion), compared with 9.9 trillion won it estimated earlier in April.
Samsung however has made a decision to turn down calls for a corporate restructuring, and has offered instead to reward shareholders by paying its first-ever quarterly dividend. Samsung is betting on the Galaxy S8 smartphone, which uses curved OLED screens that wrap around its corners.
SAMSUNG looks set to launch the follow up to the controversial Galaxy Note 7 later this year.
"The cancellation of the entire existing shares held by the company was unexpected, and helped boost Samsung Electronics' share price along with its positive earnings outlook", fund manger Park Jung-hoon at HDC Asset Management said.
Samsung is now working on its Galaxy S9 smartphone but users are trying to make most out of the Galaxy S8 device.
On Thursday, the company's IT & Mobile Communications (IM) division, which includes the company's smartphone business, reported a drop in revenue and profits in the first quarter, which the company blamed on adjustments of the prices of the S7 and S7 edge.
Samsung earlier considered the proposal, but said Thursday it had officially dropped the plan, citing regulatory hurdles and potential risks to its business. Further operating profit for the quarter was KRW 9.90 trillion, an increase of KRW 3.22 trillion YoY. Revenue increased more modestly to 50.55 trillion won ($59.81 billion), a 0.77 trillion won ($911.5 million) increase from Q1 2016.
The results, driven by strong demand for its memory chips, represented the company's second-largest ever quarterly profit. The company's goodwill had taken a major hit previous year with the Samsung Galaxy Note 7 exploding. "The company will aim to improve performance YoY by maximizing sales of the Galaxy S8 and S8+ and successfully launching a new flagship smartphone in the second half", Samsung said in a press release. Samsung has now released an update that fixes the Samsung Galaxy S8 red tint issue.
Source: Samsung will launch new flagship smartphone months after Galaxy S8
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