Huawei expects 2014 revenues to reach US$46-47 billion

Main Carrier, Enterprise and Consumer business groups recorded ‘strong performances’ in 2014 with profit of US$5.5bn predicted for the year

Huawei expects 2014 revenues to reach US$46-47 billion

Huawei expects to announce sales revenues of US$46-47bn in 2014 when it unveils its full audited results in March 2015, an increase of nearly 20% year-on-year, the company said today (13 January 2015).

Huawei’s chief financial officer Meng Wanzhou said that profits from Huawei’s main businesses in 2014 are expected to reach US$5.5bn with a margin of 12%, which it said is proportionately in line with 2013. Both cash flow from operating activities and asset to liability ratios remained stable and strong, he reported.

The company added that it maintained effective growth in 2014 thanks to its commitment to creating value for customers. Each of Huawei’s Carrier, Enterprise, and Consumer business groups recorded strong performances in 2014.

Revenue at Huawei’s Carrier Network business increased by approximately 15% over the previous year. The main drivers of the growth were a steady increase in 3G investment and the jump in 4G investments across the globe.

Huawei’s Enterprise Business grew by around 27%. The business now serves more than 100 of the world’s top 500 companies. Huawei also established strategic partnerships with leading enterprises including SAP and Accenture for joint innovation in areas including cloud computing and big data.

Finally, Huawei’s Consumer Business recorded a revenue increase of around 32% year-on-year thanks to the higher sale of mid-range and high-end handsets within a rapidly growing smartphone market worldwide, with Huawei enjoying particularly strong growth in emerging markets.

According to Ms. Meng, two major reasons explain Huawei’s steady global business growth in 2014. The first is the reinforcement of its core values - being customer-centric, treating dedicated employees as the foundation, and commitment to dedication.

The second is continuously implementing management and organisational transformation designed to improve efficiency and inspire passion across the organisation.

“By 2025, the number of connections around the world is expected to exceed 100 billion with connectivity becoming ubiquitous, much like air and water,” said Ms. Meng. “Ubiquitous connectivity and big data will drive a new industrial revolution in intelligent technology, propelling the modernisation of traditional industries, and reshaping today’s industries and business landscape.

“The focus of industrial innovation will migrate from the consumer Internet to the industrial Internet. A Better Connected World is awaiting us. Anytime, anywhere connectivity will become the new norm,” she said.

In 2014 Huawei invested between US$4-6.5bn in R&D, an increase of 28% over 2013. Huawei has cumulatively invested US$30.3bn in R&D over the last ten years. In addition, the company has submitted 546 proposals for LTE core standards to 3GPP, accounting for nearly 25% of the world’s total.

 

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