Huawei reports a rise in sales revenues of 11.6% to £23.8bn in 2013

Net profit of £2.1bn achieved with carrier network business delivering a 4% increase in revenue year on year to £16.5bn; 65% of revenue achieved outside China

Huawei reports a rise in sales revenues of 11.6% to £23.8bn in 2013

Huawei audited 2013 financial results released last week (31 March 2013) reveal record sales revenues of USD 39.5bn (£23.8bn), up 11.6% year-on-year, and net profit of USD 3.5bn (£2.1bn).

“Thanks to the favourable global macroeconomic and industry environment, as well as the effective execution of our company strategy, Huawei basically achieved our business targets for 2013,” said Eric Xu, Huawei’s rotating and acting CEO.

“Our significant global presence has helped us achieve stable and continuous growth in the carrier network, enterprise, and consumer businesses. In 2013, Huawei’s carrier network business delivered a solid performance, achieving USD 27.5bn (£16.5bn) in sales revenue, up 4.0% year-on-year,” said Xu.

The sales revenues of the enterprise and consumer businesses increased by 32.4% and 17.8% in 2013 to USD 2.5bn (£1.5bn) and USD 9.4bn (£5.6bn), respectively. Huawei earned 65% of its revenue from markets outside of China in 2013, and in the Chinese market, Huawei achieved USD 13.9bn (£8.3bn) in sales revenues, up 14.2% year-on-year.

In 2013, Huawei said it invested USD 5.1bn (£3.0bn) into R&D which is about 12.8% of its sales revenue. And, Huawei’s total R&D investment over the last 10 years exceeded USD 24.9bn (£15.0bn).

In 2014, Huawei said it sees the growing penetration of ultra-broadband and mobile broadband, particularly LTE, as an important strategic opportunity. Smart devices will be another key area for the company as they become more and more of an intrinsic necessity to “digital natives” and extensions of people’s sensory systems. ICT is turning into a production system and a core competence for enterprises, driven by the transformation of existing IT systems and the reconstruction of traditional industries toward digital.

Xu added: “2014 marks a new beginning, not only for Huawei, but for the entire industry. Huawei is still a young company, and the ICT industry is booming. A connected world has unlocked opportunities beyond our imagination. While continuing to pursue a more focused strategy and a leaner management style in 2014, we will work to expedite steady growth to lay a solid foundation for the company’s development over the next 10 years, especially to pursue a leading position in the Enterprise business.”

 

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