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
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