The financial results for the Lenovo Group's third quarter have just been released and show that, despite some challenges, revenues reached the 14.1 billion dollar mark. Growth was also seen in profit tax, which reached 390 million dollars, and net profit, which reached 258 million dollars, which represents an increase of 11% over the same period last year.
The quarter was marked by geopolitical uncertainties, a shortage of supply in the sector and, more recently, the Coronavirus outbreak (COVID-19). To overcome the restrictions and delays caused by the prolonged closure of the company's factory in China, Lenovo says in a press release that it will work to ensure geographic balance and reinforce the management of distribution chains worldwide.
According to the data provided, all of the company's business segments posted positive results in the third quarter, with the Intelligent Devices Group continuing to lead in this area. The PC and Smart Devices Group managed to achieve revenues of around 11.1 billion dollars, a profit tax of 684 billion dollars and a 6.2% margin.
The company indicates that, when it comes to PCs, the premium categories, which include equipment from the Gaming, Thin & Light, Visuals, Workstations and Chromebooks lines, are showing strong growth. For Lenovo, the new ThinkBook Plus, ThinkPad X1 Fold and Yoga 5G will continue to drive the segment.
The Mobile Business Group posted a profitable fifth consecutive quarter, driven by the growth in Lenovo's business volume in Latin America. The company also underlines the re-entry into the premium segment with the launch of the Motorola Razr. Lenovo also advances that the distribution of servers in the Data Center Group grew 18% compared to the same period in 2019. The unit's revenues remained stable, with profitability showing a tendency to increase.
Lenovo says the Intelligent Transformation strategy continues to be one of its strengths in terms of growth. In all, software and services revenue reached $ 1 billion, contributing 7% to the group's total revenue. IoT, smart infrastructure and Smart Vertical also saw high levels of growth in the third quarter.