HTC is now moving in the right direction following the company’s latest revenue announcement.
HTC releases its revenue figures each month and generally speaking the trend has been down. Whether looked at year-on-year or month-on-month, the same downward trend has been in effect and for quite some time now.
More recently, it had gotten to a point where the decreases had started to slow down somewhat although this was simply due to there being less room for HTC’s revenue to continue to drop before it reached absolute zero. While some may have expected that slowing to continue as zero neared, it seems June was a much better month for the company than most would have predicted.
To be clear, it still was not a great month for the company, just a good month by the company’s recent standards.
For June of 2019 HTC has confirmed it brought in NT $1.46 billion and this roughly equates to just shy of $47 million in U.S. speak.
This essentially means the company doubled its revenue month-over-month considering last month’s revenue announcement detailed NT $0.75 billion – about $24 million U.S.
Undoubtedly, this is good news for the company who had become accustomed to posting monthly revenue figures that just continued to fall. However, it remains to be seen how much of an overall change it represents in the grand scheme of things.
This is not the first time the company has seen a singular monthly boost in revenue before returning to falling ways the next month and so firm conclusions on what this means are too early to make.
For example, even though June is up considerably over May 2019, you only have to look at last year to see how bad things have gotten for HTC recently. In spite of announcing close to $47 million for this June, June of last year brought in almost double that figure – $71.5 million.
On the surface that seems like a bad year-over-year decline (and it is), but there are levels involved here. For example, in 2017 HTC announced $220 million in revenue for June alone. Therefore, although HTC has now announced a month-over-month increase, it is still significantly down on last year, which in itself was even more significantly down on the year before.
The same overall trend is in effect with the year-to-date totals. HTC has now confirmed 2019 so far has brought in NT $5.75 billion. That’s around $184 million in U.S. and compares to the $499 million for January through June of 2018 and the $984 million for the same period during 2017. In spite of the recent uptick, 2019 remains considerably down against last year, which again, was already considerably down on the year before.
If HTC is on the verge of turning its fortunes around, it will need to maintain an increase in revenue month-over-month. This not only means it needs to continue to buck the trend of recent months, but also how the year has typically panned out for the company in general. For reference, in July of 2018, HTC saw its revenue drop from June’s $71.5 million down to just under $49 million and the same trend was in effect in 2017 when June’s $220 million revenue dropped down to $198 million the next month.
HTC will need to make sure the same June to July pattern does not happen again this year.