Huawei Australia sheds $50 million in revenue after delays in telco deals

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Huawei Australia sheds $50 million in revenue after delays in telco deals

Huawei saw its Australian revenue drop by $50 million in 2017 due to a decline in hardware sales and services revenue, contributed in part by delays in orders from telco partners.

The vendor saw its revenue drop to $623 million for the year ending 31 December 2017, down 8 percent from $673 million in the same period last year. 

“The drop in revenue was due to a few factors, including the timing of delivery projects with our carrier customers, and a transition to higher-end devices in the consumer business,” Huawei Australia chief finance officer Luke Austin told CRN.

“However, our ongoing focus on business efficiencies have also helped keep us profitable for the year."

Sales of hardware was $350 million, down 27.4 percent from $446 million in the previous year, while service revenue was at $126 million, down 15 percent percent compared to $145 million in 2016. Construction revenue came in at $147 million, up 79 percent from $82 million.

Profit after tax was $15.6 million, up 30 percent from $12 million in 2016, with a reduction in the cost of sales and distribution expenses contributing to the increase.

The company expects to see continued growth across all business groups and will continue to strengthen its reseller relationships with Optus and Vodafone.

“We are also expecting continued work with our key enterprise customers such as South32 and Santos, as well as some new wins, which were mainly done through the channel,” Austin said.

Perth-based South32 is a mining and metals company that was spun out of BHP Billiton in 2015. Adelaide-based Santos meanwhile is Australia's second-largest independent oil and gas producer.

Last month, Huawei Australia appointed Nokia's former global head of 5G technology, David Soldani, as its new chief technology officer.

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