Huawei’s UK revenue and profit shrinks after 5G ban

The imminent economic impact of the UK government’s ban on the use of Huawei equipment on 5G networks became apparent after Chinese companies revealed a reduction in revenue and profits in the UK unit.

British telecommunications company last summer No purchase It is a 5G device of a Chinese company from January 2021, and it is necessary to remove all the devices already installed by 2027.

This will allow companies such as Vodafone and BT to become Ericsson, Nokia, or Fill the gap In the market left by the ban on the world’s largest telecommunications equipment company.

Huawei Technologies, a UK sales force, said sales in 2020 were down 27% to £ 913m and operating profit was down a quarter to £ 36.4m before tax. Profit figures benefited from a £ 26m reduction in costs during the period due to reduced employee and travel expenses.

Starting with £ 55m in 2019, we have paid a dividend of £ 90m to the parent company.

The UK business is a relatively small division of the broader Huawei business, with 2020 sales of $ 137 billion (£ 97 billion) and annual operating profit of $ 11 billion (£ 7.8 billion). It is reported to have decreased.

Nonetheless, the UK business became a symbol of Huawei’s tragedy last year after performing an astonishing U-turn that the British government first decided to allow limited use of Huawei’s 5G equipment.

The UK has long been the gateway to the world of Chinese companies, and Huawei has funded test centers operated by UK security services to reassure governments and industry that their equipment is safe.

Former BP CEO Sir Brown chaired Huawei Technologies last year. Former BT CEO Sir Mike Lake followed in March of this year.

Huawei said: “Political decisions will not only have a significant impact on UK businesses, employers and customers, but will also slow 5G deployment and push the UK into the digital slow lane.”

US officials have led the accusation against Huawei and pressured countries around the world to stop using the company to supply equipment to critical networks. The move by US companies to stop supplying Huawei meant that they couldn’t use the software for consumer products such as Android-based smartphones and struggled to procure chips.

The full impact of the UK government’s ban could be revealed in 2021 accounting once the block of 5G equipment begins. The Chinese company still operates in countries that supply broadband equipment and has important research resources in the country. Despite a government ban, we are sticking to plans to build a new photonics facility outside Cambridge.

Huawei’s UK revenue and profit shrinks after 5G ban Source link Huawei’s UK revenue and profit shrinks after 5G ban

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