Huawei announces $2.5 bln net profit

Huawei, one of the two companies which were selected to carry out the vast telecom expansion project in Ethiopia, has registered the highest revenue in the past year.
Even though the performance of most of the international telecom firms was unsatisfactory in 2012, Ericsson and the Chinese private telecom company have registered high revenues.
According to the report that was released a week ago, Huawei declared USD 35.4 billion in revenues in the same year, while the company’s revenue had been USD 32.4 billion in the year 2011. The report indicated that the Chinese giant has secured about USD 2.5 billion in net profit in the stated year, which has grown by USD 623 million compared with the performance of 2011. The other firm which had performed tremendously during the past   year is Ericsson, which was one of the companies that participated in the vendor financing bid for the telecom expansion project in Ethiopia, has registered USD 35.8 billion in revenues in the reported year, up from USD 32.9 billion in the 2011. But in terms of profits, the Swedish giant registered lower income than the Chinese firm, collecting USD 947 million as profit in the 2012 report, while in 2011 it was over USD 1.8 billion. 2012 was not a great year for most telecom firms. Most giants in the industry registered lower performance, especially in terms of revenue, compared with the one in 2011. In fact, some international telecom companies have registered negative profit compared with the previous year.
The stable and healthy development of vendor financing is very important for long-term partnerships. In this regard, Ericsson and Huawei have taken the leading position in the Information Communication Technology (ICT) industry.
The Chinese firm established it’s office in Ethiopia a few years ago and is expected to undertake at least half of the USD 1.3 billion telecom expansion project which is expected to commence before the end of the current fiscal year (July 7, 2013).
The new project will double the mobile subscription capacity from the current 20 million and is also anticipated to resolve the recurrent problems that subscribers are facing when using the telecom network. The Chinese firm has become one of the leading telecom firms in the world. Currently, it has several large contracts with other huge telecom companies on six continents and also undertakes the supply of modern telecom equipment. ZTE is the other Chinese state firm that is expected to work on the expansion project in the country with Huawei. The state firm has also carried out the previous USD 1.5 billion project in Ethiopia.

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