Over the last five years Huawei’s total revenue has increased at an annual compounded growth rate of 13%. The company’s VP for accounting, Fan Chen, referred to this as a “sustainable growth” rate for the future during his presentation at the company’s 11th analyst summit in Shenzhen.
Last year its revenue expanded 8.5% $39.5 billion and its net profit hit 21 billion yuan ($3.39 billion) – or 8.8% of revenue.
The top 50 global telecom carriers accounted for 77% of Huawei’s total carrier business in 2013 -- up from 75.2% in 2012.
Its spending on R&D increased to 30.7 billion yuan (nearly $5 billion) from 29.9 billion yuan in 2012. As a percentage of revenue R&D declined slightly to 12.8% from 13.5% the previous year.
Chen expects revenue to increase 10% this year and hit $70 billion in 2018.
Broken down by business group, its carrier network business was up 4% year-on-year, with revenue of 166.5 billion yuan ($26.9 billion). Its enterprise group grew the fastest, expanding 32.4% the previous year to 15.3 billion yuan ($2.47 billion). The consumer business was up 17.8% to 57 billion yuan ($9.22 billion). It shipped 128 million devices, including 52 million smartphones (up 60% from 2012).
The carrier network unit accounted for 70% of overall revenue while the consumer group made up 24% and enterprise grew to 6%.
Within its carrier network group, wireless networks saw revenue rise 5.4% to 52.5 billion yuan ($8.5 billion). Its fixed network business declined 7% to 45.1 billion yuan ($7.3 billion).
The strongest growth was registered by its global services group, which grew 21% to 52 billion yuan ($8.4 billion) while the carrier software and core networks group was down 10% to 16.9 billion yuan ($2.7 billion) -- it now accounts for about 10% of carrier revenue.
By region, China accounted for 35% of revenue, EMEA represented 35%, Asia Pacific 16.3% and Americas 13%. Its business in China experienced the fastest growth -- up 14.2% to 84 billion yuan ($13.58 billion). In Asia Pacific revenue was up 4.2% in 2013 to 38.9 billion yuan. Its EMEA business increased 9.4% to 84.7 billion yuan while revenue fell 1.3% in the Americas to 31.4 billion yuan.