HTC Financial Troubles Continue

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Avatar of James Read
by
on January 6, 2014
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Smartphone giants HTC continue to post disappointing financial figures that suggest that the Taiwanese company did not have a great 2013.

In the company’s quarterly report for the final period of 2013 HTC posted a low profit margin of NT$310 million (which translates to around £6.3 million), which came from a rather large revenue of NT$42.9 billion (around £853 million).

This does mean that HTC avoided posting an operating loss for a second time in a row, after the troubled smartphone maker posted a loss of £61.5 million for the third quarter of 2013, which was the first time in the company’s history that a loss has been posted.

What will be more worrying for whichever executive is actually in charge to go through these figures is the fact that the company only avoided posting two losses in a row by selling their stake in Beats Audio.

In a report from Reuters it is claimed that the £52 million one-off profit they made from selling their stake in Beats will have been included in the calculations for the final quarter report, meaning that without this sale the fourth quarter report would have shown losses of around £42 million for the last part of 2013.

This is a worrying trend that is coming from the Taiwenese giant, it is especially perplexing considering that HTC seemed to be back in the running with top dogs Apple and Samsung with their HTC One, which earned massive plaudits and was considered one of the best phones of the year.

It seems that HTC have been a victim of Samsung’s rise in the smartphone market and they spent the latter part of last year trying to extend the success of the popular HTC One, even introducing Iron Man star Robert Downey Jr in what must have been a set of expensive adverts.