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Huawei on track for 10 per cent revenue growth

Steve Costello


Huawei said it is set to meet its target of 10 per cent revenue growth in 2013, after reporting solid growth in the first half of the year.

The Chinese company said that in the first six months, it generated revenue of CNY113.8 billion ($18.53 billion), an increase of 10.8 per cent.

It noted that “based on this robust growth and other positive business indicators”, it expects to generate a net profit margin of 7 per cent to 8 per cent in 2013.

“Our success in H1 2013 was mainly driven by the steady growth of the Carrier Network business, the expansion of the Enterprise business, and the fast growth of the Consumer business, as well as the continuous enhancement of our overall operation efficiency,” Cathy Meng, CFO, said in a statement.

Huawei’s strong performance comes at a time when many of its rivals are suffering at the hands of a tough infrastructure market.

Ericsson recently reported a flat revenue performance, as it works on improving its profitability by focusing on higher-margin contracts.

Chinese counterpart ZTE is in the process of returning to profitability after a tough 2012, although its sales continue to be impacted by weakness in some mobile activities.

And Alcatel-Lucent recently announced a turn-around plan intended to end a prolonged period of losses by focusing on high-growth areas.


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