HTC finished 2018 with yet another loss and little sign of improvement
During the three-month period ending December 31st, HTC generated total revenue of NT$4.1 billion ($132.7 million). This figure translates into an increased gross profit of NT$ 0.3 billion ($9.7 million), but once the company’s administrative costs, R&D expenses, and limited marketing budget are factored in, the number quickly turns red.
For the second consecutive quarter, HTC posted a loss of NT$ 2.8 billion ($90.6 million), although there are some positive signs. The company managed to increase its gross profit margin to 8%, which is a drastic improvement over the -30.8% margin it boasted one year earlier. The brand’s operating margin also improved a little, but still sits at -68.7%.
Ultimately, HTC still has a long way to go before it achieves profitability, but it should have a few extra streams of revenue starting next quarter. The company is due to release the HTC 5G Hub through a number of global carriers pretty soon and is also preparing the launch of its Viveport Infinity VR gaming subscription service. During the second half of 2019, a 5G smartphone is to be expected too.