HTC Q3 results: revenue rises, losses shrink

HTC released the financial results for the third quarter of this year (that ended in September). The company showed growing revenues – 18% sequentially and 4% year-on-year – but it still posted an operating loss.

The total revenue for the quarter was NTD 22.2 billion (USD 700 million) with a gross margin of 16.1%. The operating margin has improved, now at -9% (down from -23.1% a year ago). The operating loss was NTD 2 billion (USD 63 million) and an after tax net loss of NTD 1.8 billion.

The press release shows HTCs increasing focus on Virtual Reality. The HTC Vive (winner of multiple T3 awards, including Gadget of the Year) saw continued sales momentum from both the consumer and enterprise markets, but didnt give exact numbers.

The bolster the profits from Vive, HTC launched a game and app store, Viveport, where people can get a variety of VR content. We have to wait until next quarter to see if HTC has set up a profitable app store (it worked well for Apple and Google).

Also not included in this report are the effect of the Google Pixel phones (made by HTC) as they only just launched on the market.

We are delighted at how our flagship products, the HTC 10 smartphone and the HTC VIVE virtual reality system, have been embraced by the market; it endorses our revitalized focus on design, engineering and manufacturing, said Cher Wang, Chairwoman and CEO of HTC. This quarter also saw HTC launch the VIVEPORT virtual reality content store, which will enable many more people around the world to access remarkable experiences and unleash their imagination, as part of our vision for VIVE.

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