Original URL: http://www.theregister.co.uk/2014/04/01/huawei_financials_growth_profits_up/

Huawei rakes in £2 BEEELLION in profits

Shenzhen stalwart bolsters international rep

By Phil Muncaster

Posted in Financial News, 1st April 2014 03:32 GMT

Chinese tech success story and NSA spy target Huawei has seen profits jump by a third over the past year to 21 billion yuan (£2bn) on the back of strong growth from its enterprise and consumer businesses.

The Shenzhen-headquartered firm cemented its place as one of the Middle Kingdom’s most internationally successful technology providers in 2013, expanding revenue by 8.5 per cent year-on-year to 239bn yuan (£23bn), according to its annual financials.

Although the company still generates most of its revenue from making telecoms kit for carriers, the strongest growth last year actually came from its consumer (17.8 per cent) and enterprise (32.4 per cent) divisions.

By contrast, its carrier business grew by only 4 per cent.

The firm’s continued growth in this space has been hampered by its virtual exclusion from the US carrier market after a high profile report from Capitol Hill lawmakers in 2012 branded it and ZTE a threat to national security.

Still, this part of the business raked in revenue of 166.5bn yuan (£16bn) as opposed to 57bn yuan (£5.5bn) for its consumer business, which includes smartphones and tablets, and 15bn (£1.5bn) for its enterprise division.

The latter is Huawei’s newest endeavour and covers products and services in multiple areas including network infrastructure, cloud-based datacentres, enterprise information security and unified communication & collaboration.

Although the firm said it made 65 per cent of its revenue from outside of China in 2013, its success in its domestic market certainly helped bolster the impressive financials.

Sales there grew by 14.2 per cent to 84bn yuan (£8bn) and will have been boosted by the country’s expansive 4G roll-out. ®