Huawei growth falls to just 13.1% as profit margin rises
Huawei’s revenue growth rate fell from 23.2% to a modest, for the Chinese vendor, 13.1% in the first half of the year.
But the company, which is facing government bans from a number of countries, including a ban from the UK announced today, managed to keep its profit margin up, at 9.7%, showing a half-percentage-point growth from last year’s margin of 8.7%.
Huawei VP Victor Zhang (pictured) said: “Our business depends on delivering what our customers need. These results show that they continue to choose Huawei when they want reliability, security and value.”
Meanwhile John Browne, the chairman of the Huawei UK board, chose today to step down from the company, months ahead of the end of his contract.
According to Sky News this morning, Lord Browne – former CEO of BP – has given two months’ notice of his departure, to leave in September.
Browne was one of the prominent team of supporters that the Huawei management has recruited to aid it in its battle to maintain business in the UK, in the face of pressure from the US. Earlier this year Mike Rake, former chairman of BT, also joined the UK board as a non-executive director.
A Huawei spokesperson said this morning: “When Lord Browne became chairman of Huawei UK’s board of directors in 2015, he brought with him a wealth of experience which has proved vital in ensuring Huawei’s commitment to corporate governance in the UK. He has been central to our commitment here dating back 20 years, and we thank him for his valuable contribution.”
Huawei’s first half results show that the company generated 454 billion renminbi (US$64.8 billion) of revenue in the period. Of that, the carrier business accounted for 35% – the equivalent of $22.7 billion – with enterprise accounting for 8% and the consumer business, mainly mobile phones, 56%.
Huawei, which is not listed on any stock exchange, said its financial data are unaudited figures compiled in compliance with International Financial Reporting Standards (IFRS).