Sat, Mar 16, 2019 - Page 12 News List

HTC reports recovery in net profit, operational loss

By Chen Cheng-hui  /  Staff reporter

HTC Corp’s (宏達電) net profit recovered last year, the smartphone maker said in a statement yesterday, although the firm remained unprofitable on an operating basis.

Net profit reached NT$12.02 billion (US$389.15 million), with earnings per share of NT$14.72, HTC said in a statement.

The result marked a positive turn after the company reported net losses of NT$16.9 billion in 2017, NT$10.6 billion in 2016 and NT$15.5 billion in 2015.

HTC did not elaborate on the reasons behind its earnings recovery.

However, given that the company’s consolidated revenue for last year plunged by 61.78 percent annually to NT$23.74 billion and it reported an operating loss of NT$13.97 billion, one-off gains from HTC’s sale of its Pixel smartphone team to Alphabet Inc’s Google for US$1.1 billion earlier last year might have played a major role in the turnaround.

While other smartphone makers have been scrambling to introduce new flagship devices to secure their share in an ever-more competitive market, HTC has reduced its annual number of smartphone launches.

Exceptions last year included the introductions of the Desire 12-series in some regions in December and HTC’s first blockchain phone, Exodus 1, in October.

The company has been investing in the development of virtual reality (VR) and augmented reality products, but the new businesses have yet to make a significant contribution to its revenue.

HTC plans to focus on VR, 5G networking hub and blockchain technology, the statement said.

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