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Huawei H1 2013 revenue up 11 percent

Chinese telecoms gear maker is on track to achieve its goal of 10 percent growth for 2013 after "robust growth" in the first half, and expects to book a net profit of 7-8 percent for the year.
Written by Ryan Huang, Contributor

Huawei has booked at 10.8 percent increase in revenue for the first half of 2013 at 113.8 billion yuan (US$18.54 billion), putting it on track to hit its yearly target of 10 percent growth.

Huawei's "robust" first half puts it on track to hit 10 percent growth target.

Based on this robust growth and other positive business indicators, Huawei expects to generate a net profit of 7-8 percent in 2013, according to a press release on Wednesday.

The firm noted business in the first six months mainly driven by the steady growth of its carrier network business, the expansion of the enterprise business, and the fast growth of its consumer business, as well as enhanced operational efficiency.

"Revenues and profit are in line with our expectations," said Cathy Meng, Huawei's chief financial officer. "Looking ahead, we will continue to focus on our pipe strategy, increase investment in core growth areas for the business, and boost efficiency through a series of operational and management reviews and improvements."
In contrast for the same period, Huawei's counterpart ZTE also saw 11.6 percent dip in its revenue to 37.7 billion yuan (US$6.14 billion) due to weakness in its telecom networking and handsets business. However, ZTE's net profit was up 23 percent to 302.3 million yuan (US$49 million), partly due an asset sale and improved cost.

On track for 10 percent growth target

In April, Huawei had set a target of 10 percent compound annual growth rate over the next five years. It gave an optimistic industry outlook especially in growth from cloud computing, BYOD, big data and smartphones.
For 2012, it booked a 32 percent jump in net profit for 2012 at 15.38 billion yuan (US$2.4 billion), which it attributed to improved operational efficiency. It posted sales revenue of 220 billion yuan (US$35.5 billion). It had recovered from a poor first half where profit dropped 22 percent which it blamed on the global economic situation.

Huawei is making a bigger push into emerging markets such as India for its smartphones. Last month Huawei announced it would spend US$30 million to build for branding and to boost its retail presence there. It has also opened its first overseas user group, Huawei Club, in Bangalore.

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