March 27, 2018 / 3:25 AM / 5 months ago

UPDATE 1-Taiwan's HTC shares jump more than 7 pct on upbeat outlook

* Stock jumps after HTC says expects gain from Google deal soon

* Says deal will present significant growth opportunities

* Shares jump 7.35 pct, outpace gains for broader index (Updates shares, adds HTC statement)

TAIPEI, March 27 (Reuters) - Shares of Taiwan’s HTC Corp jumped more than 7 percent on Tuesday after the mobile phone maker said it expects a financial boost from a deal sealed with Alphabet Inc’s Google earlier this year.

HTC on Monday reported a net loss of T$9.8 billion ($337.3 million) in the fourth quarter, its biggest on record, due in part to competition and inventory write-downs, but said it was upbeat going forward due to the Google deal.

“HTC successfully completed the US$1.1 billion business co-operation agreement with Google at the end of January, and the gain related to the transaction will be recognised in Q1’18, enabling greater investment in emerging technologies, which will be vital across all of our businesses and present significant long-term growth opportunities,” the Taiwanese firm said in a statement.

In September, Google said it would acquire part of HTC’s smartphone operations.

HTC also said on Tuesday it had conducted a review of operations to optimize teams and processes to ensure greater co-ordination of its smartphone and virtual reality businesses.

Shares of HTC rose as much as 7.35 percent to T$64.40, outpacing a 1 percent gain for the benchmark index. ($1 = 29.0570 Taiwan dollars) (Reporting by Twinnie Siu; Editing by Anne Marie Roantree and Stephen Coates)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below