The Banking Executive - Decemebr 2021, Issue 156

ISSUE 156 DECEMBER 2021 the BANKING EXECUTIVE 25 Covid-19 Impact On Tech Companies SAMSUNG ELECTRONICS CO. - Revenue (TTM): $197.5 billion - Net Income (TTM): $18.4 billion - Market Cap: $325.4 billion - 1-Year Trailing Total Return: 17.2% - Exchange: Korean Stock Exchange Despite the continuous challenges from the COVID-19 pandemic, com- pany-wide efforts to ensure a stable supply of products and services glob- ally helped Samsung’s fourth-quarter results. As Samsung states, the profit rose 26.4 % year-on-year led by the display and memory chip businesses but fell 26.7 % from the third quarter due to weaker memory prices and sluggish consumer products sales, as well as higher marketing costs and a negative impact from the Korean won’s appreciation. For the entire year, Samsung made KRW 236.81 trillion in revenue and KRW 35.99 trillion in operating profit. The Memory Business earnings had a decline quarter-on-quarter despite solid shipments, weighed down by a continued decline in chip prices, the won’s strength, and initial costs from new production lines. In addition, the Mobile Communications Busi- ness posted a QOQ decline in profit due to weaker sales and higher mar- keting spending. On the contrary, the profit from the Display Panel Busi- ness grew significantly both QOQ and YoY, thanks to a sharp growth in the mobile display production and improved demand in the large panel market. The Networks Business saw improved earnings owing to the 5G service expansion in Korea and con- tinuing 4G/5G rollouts globally. The Consumer Electronics Division re- ported a quarterly fall in profit, as in- creased costs outweighed stronger year-end sales in developed markets. Samsung continues to be a leader in the global smartphone market. In the first quarter of 2021, Samsung held a global smartphone market share of 21.8 %. ALPHABET INC. - Revenue (TTM): $182.53 billion - Net Income (TTM): $40.27 billion - 1-Year Trailing Total Return: 77.51% - Exchange: Nasdaq As Statista mentions, in the most re- cently reported fiscal year, Alpha- bet's operating income amounted to 41.2 billion U.S. dollars, up from 34.2 billion U.S. dollars in 2019. The company’s 2020 net income amounted to 40.3 billion U.S. dol- lars. Alphabet’s revenue, which for years had consistently increased by about 20% annually, in 2020 in- creased by just 12.8%. That marked its slowest growth since 8.5% during the Great Recession in 2009.