Thursday, August 21, 2014

ZTE Sees Strong Profit Growth in 1H14 Led by 4G Rollouts in China

ZTE released financial guidance forecasting net profit attributable to shareholders of the listed company of be between RMB 1.7 billion and RMB 1.9 billion in the first nine months of 2014, an increase of between 208.2% to 244.5% from a year earlier. ZTE also reportedthat first-half net profit increased 263.9% to RMB 1.13 billion. Six-month basic earnings per share was RMB 0.33, while revenue increased to RMB 37.7 billion.

The company cited strength in revenue from network contracts and ongoing improvements to contract profitability in the first nine months, including 4G rollouts in China.

In the first six months, ZTE reported operating revenue of RMB 19.26 billion from the domestic market, accounting for 51.1% of the Group’s overall operating revenue. Leveraging opportunities presented by the large-scale deployment of 4G networks, the Group committed to efforts to develop business in emerging new sectors such as the Mobile Internet and Cloud Computing under its M-ICT Strategy. Innovative solutions were launched with enhanced in-house capabilities, while strategic cooperation with carriers was conducted in a practical manner to maintain the Group’s dominant position and increase its market shares, laying the foundations for sustainable long-term development.

ZTE reported operating revenue of RMB 18.44 billion from the international market, accounting for 48.9% of the Group’s overall operating revenue. In adherence to the strategy of focusing on major populous nations and mainstream global carriers, the Group further optimized its market profile to achieve stable operations and quality growth.

More details online.

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