Huawei FY09 results show continued growth
Huawei posts revenue growth in 2009 despite slowdown in telecom spending
Huawei has reported strong financial results for 2009, posting a 19% growth in revenues and an increase in net profit margin of 12.2%.
The company continued to grow despite a slow down in spending by telecom network operators, citing growth in its home market of China, and ongoing global expansion.
For financial year 2009. sales revenues reached RMB149.1 billion ($21.8 billion), a 19% growth from 2008, although the rate of revenue increase was down from 40% growth rate in 2008.
Net profits hit RMB18.3 billion ($2.7 billion), with a net profit margin of 12.2%. The company also improved processes and controlled costs, resulting in a total expense ratio (total operating expenses and other income as a percentage of revenue) decline 1.4% year-over-year. Huwaei said it continues to improve efficiency through
adoption of best practices and organization transformation programs including IBM's Integrated Financial Services and Accenture's Lead to Cash.
Yi Xiang, president for Middle East, Huawei commented: "Operators are looking to Huawei because of our unique value proposition of rapidly delivering robust solutions that address the business challenges of our customers through innovation. Our solutions improve network quality, reduce network maintenance expenditure and protect our customer's return on investments by ‘future-proofing' their networks. It is why Huawei is now a partner-of choice for 45 of the world's top 50 operators - up from 36 in 2008.
"We see our business momentum continuing in 2010 and expect year-on-year revenue growth of 20% driven by increased deployments of mobile and fixed broadband networks, further take-up of customized smart devices, and higher demand for professional managed services. In the Middle East where we have experienced a 20% growth, our major strategy, innovation and technology is based on our focus to support our customers' needs, demands and challenges. The growth of mobile broadband and evolution to LTE are based on our SingleRAN solution which, as an industry first, provides a uniquely convergent solution for all foreseeable primary network needs," he added.