HTC Profits Drop 98 Per Cent

HTC has posted its lowest quarterly profit since 2004 – just £1.8m for Q1 2013 on revenues of £930m.

The struggling Taiwanese company has seen its profits after tax drop by 98 per cent from the same time a year earlier. Profit margins on its products have also been falling, going from 25 per cent to 20 per cent over the course of the year. HTC’s CEO Peter Chou said this was down to the companys product mix, having launched a number of new handsets.

HTC said it believes that Q2 will see an improvement, almost doubling its revenue to £1.5bn, with its profit margin expected to increase to between 22 and 24 per cent.

In an earnings call, Chou said the company will be focusing on marketing itself as a global smartphone brand, particularly in China, North America and Europe, and pushing the HTC One handset. He said they will also continue to support the Windows Phone 8X.

Earnings per share were just 2p for the quarter. The return was just 12p a year ago.