Xiaomi increased its revenue in the second quarter of 2019 over the same period last year, but was below market expectations. In a balance sheet released on Tuesday (20), the company showed an annual growth of 15% between April and June.
As a result, revenue rose from 45.2 billion yuan (about R $ 25.8 billion) in 2018 to 51.9 billion yuan (R $ 29.6 billion) in 2019. According to The Reuters, analysts’ projections pointed to revenue of 53.5 billion yuan (R $ 30.5 billion).
Despite higher revenue, declines in investments caused Xiaomi’s net profit to fall 87% and end the second quarter at 1.96 billion yuan (R $ 1.11 billion).
Adjusted earnings, which include other non-recurring events, stood at 3.64 billion yuan (R $ 2.07 billion) and exceeded the projection of 2.74 billion (R $ 1.55 billion) pointed out by analysts.
Xiaomi sold 32 million smartphones worldwide from April to June 2019, but saw its sales drop in China, according to Reuters. This was due to slower growth in the Chinese economy and consumer support for Huawei amid trade war with the United States.
To circumvent these barriers, Xiaomi has invested in other areas. Despite being essentially a smartphone maker, the company has seen growth in its internet of things and lifestyle division, which grew 44% annually in the second quarter and revenue of 14.9 billion yuan (R $ 8.49 billion) ).
With information: Xiaomi.