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Huawei’s UK revenue and profits are declining after the 5G ban

The financial impact of the UK government’s ban on the use of Huawei equipment on 5G networks has been revealed after the Chinese company revealed that its revenue and profits in its British unit have been reduced.

Britain’s telecom companies were told last summer they would be there prohibited from purchase The Chinese company’s 5G equipment should remove the equipment already installed by January 2021 and by 2027.

This last year allowed Vodafone and BT to store spare equipment while they were preparing for Huawei’s next market from 2021 onwards by signing supply contracts with Ericsson, Nokia or smaller players. fill in the blank in a market that has been banned from the world’s largest telecommunications equipment company.

Huawei Technologies, the UK’s operating unit, said revenue fell by 27 per cent to 2020 to € 913 million, before operating profit, interest and taxes fell by a quarter to € 36.4 million. The amount of profit has been reduced by £ 26 million in expenses over the period as staff and travel costs have been lower.

He paid a dividend of 90 million euros to his parent company, more than 55 million euros in 2019.

The UK business is a relatively small division of Huawei’s wider business, which has increased revenue by $ 137 billion (€ 97 billion) from 2020 operating profits to $ 11 billion (€ 7.8 billion) a year.

The UK business, however, became a symbol of Huawei’s problems last year after the UK government made an excellent turn, initially deciding to allow Huawei’s limited use of 5G equipment.

Great Britain had a long-standing door to enter the world for the Chinese company and Huawei went so far as to fund a test center run by the British security services to ensure that the government and industry were safe in its equipment.

Lord John Browne, a former director of BP, was named president of Huawei Technologies last year. Sir Mike Rake, former director of BT, continued in March this year.

Huawei said: “Political decisions have not had a real impact on UK business, the people we employ and our customers, they will delay the deployment of 5G and put Britain on a slow digital path.”

U.S. authorities addressed the complaint against Huawei, which put pressure on countries around the world to stop using the company to supply equipment for critical networks. The U.S. company’s decision to stop supplying Huawei could not use software for its consumer products, such as Android-based smartphones, and had difficulty obtaining chips.

It is likely that the full impact of the UK government’s ban will be evident in the 2021 accounts as the 5G equipment block is launched. The Chinese company is still supplying broadband equipment to the country and has significant research resources in the country. Despite a government ban, plans are underway to build a new photonics facility outside Cambridge.


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