Xiaomi's Second-Quarter Net Profit More Than Doubled

By Kosaku Narioka

Xiaomi said Tuesday that its second-quarter net profit more than doubled from a year earlier, thanks to stronger earnings from its smartphone and tablet businesses and higher advertising revenue.

The Chinese maker of smartphones and other electronics products said net profit climbed to 3.67 billion yuan ($503.4 million) for the quarter ended June 30 from CNY1.39 billion a year earlier. That beat the estimate of CNY3.21 billion from a poll of analysts by S&P Global Market Intelligence.

Xiaomi said revenue declined 4.0% from a year earlier to CNY67.35 billion. Gross profit margin improved to 21.0% from 16.8% a year earlier.

Gross profit from its smartphone business rose 33% from a year earlier to CNY4.87 billion, thanks to increased contribution from premium smartphone shipments, softer prices of key components and lower inventory impairment provisions in the overseas market.

Revenue from its smartphone segment fell 13% from a year earlier to CNY36.60 billion, as smartphone shipments dropped 16% to 32.9 million units from 39.1 million units.

Gross profit from its Internet of Things and lifestyle products segment, which includes tablets, television sets and laptops, increased 38% from a year earlier to CNY3.91 billion on higher sales of tablets.

Gross profit from its internet services business, which includes advertising, online game and fintech services, rose 8.4% from a year earlier to CNY5.52 billion, thanks partly to advertising revenue growth.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

August 29, 2023 06:38 ET (10:38 GMT)

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