Info Tech
Samsung Electronics sparks dividend debate after big worker bonus
SEOUL – Samsung Electronics Co Ltd, the world’s largest smartphone maker, has reignited shareholder calls for more returns after splashing out on a special employee bonus estimated at nearly $1 billion.
The arch rival of Apple Inc drew on its $50 billion cash pile to mark 20 years of transformation into Asia’s most valuable company – just two months after investors criticized it for not spending enough to increase its dividend yield.
The bonus, to commemorate Chairman Lee Kun-hee’s “New Management” strategy, hit October-December operating profit which Samsung said likely fell 6 percent on year and 18 percent from a record third quarter to 8.3 trillion won ($7.8 billion).
Initial street estimates put the bonus at 300 billion to 700 billion won, but the extent of the profit decline indicated a payout closer to 1 trillion won, or an average $4,000 for each of the company’s 240,000 employees, analysts say.
That is likely to have sent fourth-quarter profit below even the most bearish forecast among 23 polled analysts of 8.8 trillion won, to the lowest level since the 8.1 trillion won of July-September 2012.
“This (bonus) could increase pressure from some shareholders to raise shareholder returns, and I also do have some hopes for more payout either in the form of a share buyback or dividends,” said Kim Kyung-yoon, head of equities management at Kyobo Axa Investment Managers, which owns Samsung shares.
Like most South Korean companies, Samsung has kept its dividend yield low at around 1 percent or less, which is a primary reason its shares are not as valuable as global peers.
“We are not against paying bonuses to workers but at least the shareholders should get as much,” said Mark Mobius, executive chairman of Templeton Emerging Markets Group. “They should really celebrate the event with a big bonus, a bigger dividend, which may happen.”
Samsung shares saw their first annual decline in 2013 in five years partly due to the company’s conservative shareholder return policy, despite operating profit likely growing 28 percent to a record 36.8 trillion won. They closed down 0.2 percent on Tuesday, versus a 0.3 percent rise in the broader market.
Returns equal around 5.1 percent of profit, the lowest since 2007 when Samsung last bought back shares, at which time its rate of return was 15.8 percent.
“NO TRANSPARENCY”
Lee, who took over Samsung Group in 1987 from his founder-father, in 1993 ordered lieutenants to “change everything except your wife and children” to transform Samsung Electronics from a mid-tier television set manufacturer into a global technology leader.
It has since overtaken Sony Corp in TVs, Nokia Oyj in mobile phones and Apple in smartphones.
Lee, who turns 72 this week, set the agenda for the future in his New Year speech by stressing the need to drop a hardware-centric culture and adopt new ways of thinking to stimulate innovation.
“In theory this (bonus) has nothing to do with Samsung’s enormous profit… and will not be repeated, although there is no transparency on this issue and so no guarantees,” CLSA analyst Matt Evans said in a note.
“Whether shareholders will receive any similar ‘bonus’ in the form of a meaningful dividend or share buyback remains to be seen. However, this analyst is not holding his breath as M&As are a more likely way” of using its cash reserves.
Korean companies often top up low salaries with bonuses. Samsung Electronics gives up to 50 percent of annual salary by returning 20 percent of profit that exceeds targets. It also offers up to 100 percent of basic monthly salary to employees in units which achieve targets.
SMARTPHONE SALES
Fourth-quarter earnings were also likely affected by Samsung’s flagship Galaxy S and Note smartphones losing out somewhat to Apple’s iPhone in primary markets such as the United States and Japan during the year-end holiday season.
The company, ahead of releasing final figures on January 24, estimated fourth-quarter sales of 59 trillion won. This compared with the 61 trillion won Thomson Reuters’ Starmine SmartEstimate of 23 analysts, which gives greater weighting to the more accurate analysts.
“Even taking into account one-off costs, the (fourth-quarter) profit is lower than expected. Samsung has not provided details, but smartphone profit may have fared worse than expected, given increased marketing expenses,” said IBK Investment & Securities analyst Lee Seung-woo.
Samsung is bracing itself for its toughest year at its mobile devices division since it started making smartphones in 2007, as Apple raises its China presence and fights back with larger-screen offerings.
Analysts estimate 2014 profit growth at its mobile arm to range from low single digit to mild contraction after growing eight times over the past five years.
– REUTERS
In efforts at spicing up the 2023 ITREALMS E-Waste Dialogue, the management of ITREALMS Media has partnered with E-waste Producer Responsibility Organization of Nigeria (EPRON) membership organisations for a day-long collection scheme of small electronic waste on Friday, December 15, 2023.
The EPRON members aligning their partnership with 2023 ITREALMS E-Waste Dialogue are EL-AS Tech Enterprises Limited and WEEE Eco-Friendly.
ITREALMS’ day-long collection scheme is part of the commemoration of 2023 international E-Waste Day (IEWD) within the ITREALMS E-Waste Dialogue with the theme “You Can Recycle Anything with a plug, battery or cable” at Welcome Centre Hotels, International Airport Road, Lagos.
Revealing this collaboration, the Group Executive Editor, ITREALMS Media, the organisers of the 2023 ITREALMS E-Waste Dialogue, Sir. Remmy Nweke, urged mobile device enthusiasts to come along with their devices that have reached their end-of-life to the venue for proper disposition by professionals who would also be on grounds to address some topical issues.
The collection of small electronic wastes especially mobile phones and like-devices, would be carried out by EPRON member organisation, EL-AS Tech Enterprises Limited as facilitated by ITREALMS Media group as part of this year’s ITREALMS E-Waste Dialogue on Friday, December 15, he added.
He disclosed that the exercise would commence at Welcome Centre Hotel by 9am till close of work hours the same day.
Nweke pointed out that the collection of small e-waste items would include mobile phones, pointers mouse, earpieces, rechargeable torches, phone chargers, to name a few.
Further, he said, that this initiative has become time-serving because some people may have missed any other opportunity before now for the year-long campaign, hence this awareness on e-Waste has to be continuous, “ITREALMS came up with this scheme.”
Nweke beckoned on Nigerians, especially mobile phone users, to leverage the opportunity in disposing of their mobile devices they no longer use, of course in exchange for a voucher or gift item.
In her reaction to this year’s day-long small waste collection, EPRON Executive Secretary, Mrs. Ibukun Faluyi, described the initiative as commendable, expressing confidence it would intensify the collection of end-of-life devices for proper disposition.
Mrs. Faluyi, also urged Nigerians to take advantage of this day-long collection of small wastes courtesy of ITREALMS Media.
Recalling for instance that in October 2022, EPRON had partnered SLOT alongside some UN agencies for collection of small e-waste items in Lagos, including the United Nations Information Centres (UNIC), United Nations Industrial Development Organization (UNIDO), International Labour Organisation (ILO), Lagos Waste Management Authority (LAWMA) and Lagos State Environmental Protection Agency (LASEPA).
This is even as the Executive Vice Chairman of the Nigerian Communications Commission (NCC) Dr. Aminu Maida and Director-General, National Environmental Standards and Regulations Enforcement Agency (NESREA), Prof. Aliyu Jauro, would both lead speakers at the 2023 ITREALMS E-Waste Dialogue slated for this Friday, December 15, in Lagos.
Today, September 12, the tech corporation Apple will introduce the iPhone 15, their newest iPhone model.
According to a Forbes story, this model, which will be introduced at the company’s “Wanderlust” event in Cupertino, California, will be available in four variations: the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, and iPhone 15 Pro Max.
Here are five things you should know about the new iPhone 15 model.
1. The new model is made of titaniu, not stainless steel as some other Apple smartphone models, Senior research analyst at DIGITIMES, Luke Lin reports.
2. The Pro Max model will feature double the optical zoom on the iPhone 14 as it comes with a newly-introduced ‘periscope lens upgrade, performing 5-6x optical zoom.’
3. The Pro models will carry an A17 bionic chip expected to make it perform faster.
4. The iPhone 15 model will feature a USB-C charging port, the same port featured on some Android phone models.
5. Due to its titanium shell, the new model is anticipated to be more expensive to purchase. The following is the speculated price list, as reported by Forbes:
The iPhone 15 starts at $799, the iPhone 15 Plus at $899, the iPhone 15 Pro at $1,099 ($100 increase), and the iPhone 15 Pro Max at $1,299 ($200 increase).
In an effort to reduce the exorbitant cost of Premium Motor Spirit, better known as petrol, the Infrastructure Bank Plc announced its collaboration with FEMADEC Group on Monday to offer 500 buses powered by autogas (Compressed Natural Gas).
Partners in the agreement claimed that the project was created to provide citizens with dependable, affordable, and environmentally friendly travel options, taking into account the negative effects of the nationwide increase in PMS costs.
Under Decree No. 51 of the Federal Republic of Nigeria’s 1992 Constitution, the Infrastructure Bank, originally known as the Urban Development Bank of Nigeria Plc, was founded in 1992 to promote the quick development of infrastructure throughout the nation.
In a statement issued in Abuja on its partnership with FEMADEC, the bank said, “The preliminary offer extended by TIB lays a solid foundation for the expansion of FEMADEC Group’s CNG bus fleet.
“With plans to introduce 500 CNG buses within the next five years, commencing with an initial batch of 50 buses in the forthcoming year, this proposal stands poised to instigate significant change.
“The acceptance of this proposition by FEMADEC Group, notably championed by Fola Akinnola, the Group Chief Executive Officer, is a testament to their zeal and dedication to this alliance.”
The bank described the partnership as a “pivotal endeavour that is primed to redefine Nigeria’s public transportation landscape, offering dependable, cost-effective, and ecologically conscious travel alternatives for citizens, while harmonising with the nation’s broader sustainability ambitions.”
“This partnership represents a remarkable stride towards a more ecologically aware future for Nigeria’s transportation sector, highlighting the shared commitment of both TIB and FEMADEC Group to sustainable advancement and progress.”
It said FEMADEC Group’s strides in operating Compressed Natural Gas buses, including the existing fleet of 20 CNG buses under LAMATA, underscored their unwavering dedication to ecologically sound solutions, a commitment predating the fuel subsidy removal.
“Their leadership within the CNG value chain is undeniable, and the new alliance with TIB underscores their foresight.
“This partnership seamlessly aligns with TIB’s sustainability objectives, echoing their resolute endorsement of the government’s net-zero and climate change agenda.
“The bank’s aspiration to champion Nigeria’s infrastructure progress is evident in its endorsement of pivotal initiatives like this, yielding expansive positive impacts on both the environment and society,” the bank stated.
The bank added that it would continue to make a significant contribution to the country’s growth as a leading financial institution committed to advancing effective and long-lasting infrastructure projects.
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