Monday, July 14, 2014

ZTE Raises its Financial Outlook

Citing strong momentum in its 4G infrastructure operations, ZTE raised its forecast for first-half profit to between RMB 1 billion and RMB 1.15 billion, an increase of between 223% and 271% from a year earlier.  This compared with earlier guidance of between RMB 800 million to RMB 1 billion.

The company said it continues to improve its cost controls and operational management.  It also noted improved profitability in international contracts.

Some highlights:

  • 4G infrastructure accounted for an increased proportion of revenue.
  •  ZTE retained its position as the leading vendor of 4G infrastructure to China Mobile, achieving increased market share in the tender this year. 
  • ZTE consolidated its position as the leading vendor of 4G infrastructure to China Telecom and China Unicom.
  • 4G devices are now expected to account for 40% of total terminals shipments in 2014. ZTE achieved strong performance in the United States, especially in the prepay handset market, benefiting from the availability of new innovative products and cooperation with partners.
  • The Enterprise Business division continues to see fast growth. The company’s information technology applications and solutions are used by customers including Tencent, Bank of China, China FAW, PetroChina, and China Eastern Airlines.
  • ZTE expects its business will benefit from the the award of FDD-LTE licenses in China, and the investment in 4G networks in markets such as Japan and India.

See also