Huawei net profit up 32.1% to £1.61bn on revenues of £23.1bn in 2012

Chinese mobile infrastructure and devices manufacturer is expecting a compound annual growth rate of 10% over the next five years

Huawei net profit up 32.1% to £1.61bn on revenues of £23.1bn in 2012

Huawei recorded sales revenues of CNY220.19 billion (£23.18bn) and a net profit of CNY15.38 billion (£1.61bn), according to its audited 2012 financial results released today (8 April 8 2013). Sales revenues grow by 8% on 2011, while net profit was up 32.1% on the same year.

However, while revenues have grown steadily over the last five years, net profit, despite the improvement on 2011, was below the CNY24.71 billion (£2.60bn) Huawei made in 2010 and CNY19.00 (£1.99bn) it recorded in 2009.

Looking forward, Huawei said it had achieved a steady business growth and forecasts a compound annual growth rate of 10% over the next five years.

The company grew each of the three of its business groups (BGs) in 2012. The Carrier Network BG achieved sales revenues of CNY160.1 billion (£16.8bn), an increase of 6.7% year-on-year.

The Enterprise BG continued to grow in the Chinese market and actively expanded internationally, achieving CNY11.5 billion (£1.2bn) in sales revenue, a 25.8% increase from the previous year. The Consumer BG, which includes the company’s smartphone products, saw global sales revenue reached CNY48.4 billion (£5.0bn), an increase of 8.4% year-on-year.

Europe, the Middle East, and Africa (EMEA) saw strong growth and contributed record regional sales revenue of CNY77.4 billion (£8.14bn), an increase of 6.1% year-on-year.

In the Asia Pacific region, sales revenue was CNY37.4 billion (£3.93bn), an increase of 7.2% year-on-year; in the Americas, sales revenue was CNY31.8 billion (£3.35bn), an increase of 4.3% year-on-year. Huawei generated CNY73.6 billion (£7.74bn) revenue from China, an increase of 12.2% year-on-year.

In 2012, Huawei invested CNY30.09 billion (£3.16bn), or 13.7%, of its total sales revenue into research and development (R&D). The company has established 16 R&D centers and 28 joint innovation centers across the world.

The company said that moving ahead it will focus the Carrier Network BG on meeting the opportunities presented by the increased demand for professional services, carrier data centre integration and cloud services.

‘In 2012, Huawei met business performance expectations through improved operational efficiency,’ said Guo Ping, Huawei's rotating and acting CEO. ‘Today, telecom networks are yet to meet the requirements for ubiquitous connections - zero wait time, ultra broadband, and smart applications.

‘In the future, ICT will continue to grow, with new opportunities coming from cloud computing, BYOD (Bring Your Own Device), and big data, and feature phones being replaced by smartphones at a faster rate.

‘Huawei will continue to focus on its pipe strategy, integrate and develop businesses around the information pipe, and create value for customers, while achieving sustainable and effective growth,’ said Ping. 

Written by Wireless magazine
Wireless magazine

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