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Huawei doubles profit in 2009
By Zhu Shenshen |
March 31, 2010, Wednesday
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Online Edition
Online Edition
HUAWEI Technologies doubled its net profit in 2009 and forecast strong revenue growth in 2010, thanks to increased overseas revenue and domestic 3G demand, China's biggest telecom equipment maker said today.
Domestic telecommunications operators, however, are expected to cut spending this year, which may force Huawei to grow more in overseas markets, industry insiders said.
The net profit of Huawei, now the world's No. 2 telecom equipment maker behind Ericsson, reached 18.3 billion yuan (US$2.7 billion) in 2009, compared with 7.8 billion yuan a year ago. Revenue rose 19 percent to 149.1 billion yuan.
The cash flow of the Shenzhen-based firm jumped 237 percent to 21.74 billion yuan by the end of 2009.
"We see our business momentum continuing in 2010 and expect year-on-year revenue growth of 20 percent, driven by increased deployments of mobile and fixed broadband networks, further take-up of customized smart devices and higher demand for professional managed services," chief marketing officer Ken Hu said.
By the end of 2009, Huawei had business from 45 operators from the world's top 50, compared with 36 in 2008, according to the company.
Huawei's business was also driven by China's move to issue 3G licenses in January last year.
Chinese carriers, including China Mobile, China Unicom and China Telecom. have invested heavily to upgrade their networks to 3G, which allows users to enjoy high-speed service like video conferences and film downloads on their phone.
But Chinese carriers will probably cut spending by 22 percent this year to improve their profitability, Wendy Liu, an analyst of Royal Bank of Scotland, said in a recent note.
.
Domestic telecommunications operators, however, are expected to cut spending this year, which may force Huawei to grow more in overseas markets, industry insiders said.
The net profit of Huawei, now the world's No. 2 telecom equipment maker behind Ericsson, reached 18.3 billion yuan (US$2.7 billion) in 2009, compared with 7.8 billion yuan a year ago. Revenue rose 19 percent to 149.1 billion yuan.
The cash flow of the Shenzhen-based firm jumped 237 percent to 21.74 billion yuan by the end of 2009.
"We see our business momentum continuing in 2010 and expect year-on-year revenue growth of 20 percent, driven by increased deployments of mobile and fixed broadband networks, further take-up of customized smart devices and higher demand for professional managed services," chief marketing officer Ken Hu said.
By the end of 2009, Huawei had business from 45 operators from the world's top 50, compared with 36 in 2008, according to the company.
Huawei's business was also driven by China's move to issue 3G licenses in January last year.
Chinese carriers, including China Mobile, China Unicom and China Telecom. have invested heavily to upgrade their networks to 3G, which allows users to enjoy high-speed service like video conferences and film downloads on their phone.
But Chinese carriers will probably cut spending by 22 percent this year to improve their profitability, Wendy Liu, an analyst of Royal Bank of Scotland, said in a recent note.
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