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Lenovo Records Group Revenue Surge Past $60 Billion

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Jenna Delport
Jenna Delport
I’m a tech writer, world traveller, avocado-eater and dog lover, not always in that order.

Lenovo has announced its results for the Group as well as its fourth quarter and fiscal year, revealing growth across all parts of the business. The company says its results demonstrate the Group’s resilience and ability to achieve balanced, consistent, and sustainable growth.

“Last quarter, we delivered our fastest-growing quarter in almost a decade and closed the fiscal year with the new milestone of passing $60 billion in revenue and significant growth in profit to a new record. These historic highs were achieved by leveraging our core competencies of a clear strategy, innovative products, operational excellence, and global-local model to meet the new needs in the New Normal,” says Yuanqing Yang, Lenovo Chairman and CEO.

“Looking forward, we will capture the huge growth opportunities created by the market trends of information consumption upgrade, infrastructure upgrade and application upgrade to drive long-term sustainable growth and ensure we can build an even smarter future in the years ahead.”

Lenovo Financial Highlights

Fourth-quarter Group revenue grew at 48% year-to-year to US$15.6 billion. Profit recorded its highest growth rate in two years – with pre-tax income of US$380 million and net income of US$260 million – up 392% and 512% respectively.

The Q4 results closed out a record year, with annual Group revenue surging past US$60 billion, adding more than US$10 billion on the previous fiscal year. Profit grew even faster, with pre-tax income of almost US$1.8 billion and net income of US$1.2 billion – both up more than 70% year-on-year.

  • Best fourth quarter ever for PC and Smart Devices (PCSD) with US$12.4 billion in revenue, up 46% year-on-year and profitability at an all-time high of 6.7%.
  • All geographies realized high double-digit growth in PCSD revenue and PC volume outgrew the market – further strengthening the company’s global #1 ranking in PCs.
  • Tablets had a breakthrough quarter, with shipments growing 157% year-on-year – around three times as fast as the market.
  • High growth and premium segment volumes (Gaming, Thin & Light, Chromebooks, Visuals) continue to outgrow the market and deliver strong double to triple-digit growth rates.
  • Revenue from the Mobile Business Group (MBG) achieved hyper-growth, up to 86% year-on-year to US$1.54 billion – achieving pre-tax income of US$21 million – a record high since the Motorola acquisition.
  • Expanded carrier relationships and a strong product portfolio, including 5G products, saw smartphone volumes grow at a triple-digit rate in North America, Europe, and Asia Pacific.
  • Smartphone market share in our Latin America stronghold reached a record of nearly 21%.
  • Revenue for the Data Center Group (DCG) was strong, growing 32% year-on-year to US$1.6 billion, the fifth straight quarter of premium-to-market growth. Profitability improved 4.4 points year-on-year.
  • The Cloud Service Provider business grew 73% year-on-year and at a 61-point premium to the market.
  • Record high fourth-quarter revenue was achieved for Server, Storage, Software Defined Infrastructure, Software, and HPC/AI. Traditional storage was a particular highlight growing at 73% year-on-year.
  • Burgeoning Edge business delivering strong signs of future growth.
  • Transformation businesses also achieved record growth, fueled by ongoing strong growth in services and software revenue* up 44% year-on-year. Managed Services revenue* (DaaS, TruScale) nearly doubled, and Solutions revenue* grew 65% year-on-year.
Edited by Jenna Delport
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