Samsung Electronics predicted a sharp jump in operating profit for Q2, driven by strong chip demand spurred by rising internet usage and a one-time gain related to its display business.

In earnings guidance, the world’s largest smartphone maker forecast operating profit of KRW8.1 trillion ($6.8 billion), an increase of 22.7 per cent year-on-year, on consolidated revenue of KRW52 trillion, down 7 per cent on weaker sales of smartphones and TVs.

Analysts told Reuters the one-off gain likely stood at KRW1 trillion and related to a display deal with Apple, which had fallen short of agreed shipment targets.

The South Korean vendor warned in April overall earnings in Q2 were likely to decline because the Covid-19 (coronavirus) pandemic would significantly impact demand for several core products. But CW Chung, Nomura head of research in South Korea, told Reuters the impact of the pandemic had been “less severe” than expected.

In Q1, Samsung’s net profit fell 4.3 per cent to KRW4.9 trillion on revenue of KRW55.3 trillion, up 5.6 per cent.

Samsung doesn’t disclose net profit or break out operating profit and revenue by division in quarterly guidance. It is scheduled to release these figures on 30 July.