Chinese smartphone maker Xiaomi Corp said on Tuesday its fourth-quarter net profit more than tripled to 1.85 billion yuan ($275.59 million), on stronger revenue. That exceeded the 1.7 billion yuan average estimate of 10 analysts, according to Refinitiv data.
Revenue for the period increased 27 percent to 44.4 billion yuan, lower than the 47.4 billion yuan average estimate of 13 analysts, according to Refinitiv data. The results show Xiaomi is weathering fairly well a slowing Chinese smartphone market, the world's biggest, by increasing its focus on markets such as India and Europe.
For the full 2018 calendar year, Xiaomi brought in revenue of 174.9 billion yuan and made a net profit of 8.6 billion yuan. This marks the third set of financial results for the company since its IPO in Hong Kong. Xiaomi shares have rallied nearly 30 percent since their 2019 lows in January, though they remain well below their July listing price To compensate for its slowing home market, the company has aggressively expanded in Europe. After broadly rolling out in the continent in early 2018, the company now ranks as the region's fourth-largest phone vendor.
Speaking on a call with reporters, Xiaomi CFO Shou Zi Chew said that sales from outside of China made up 40 percent of the company's revenue in 2018, adding that global expansion would be a priority for 2019. "We will continue to explore the global markets and replicate the success in India in other key markets such as Indonesia and Western Europe," he said. "We will also expand into more new international markets in 2019." Xiaomi has also revamped its smartphone lineup, paving the way to sell more expensive devices that can raise profit margins. In China, the average selling price of the company's phones increased 17 percent, while overseas they increased 10 percent, according to the company's earnings report.