ZTE net profit jumps 48% on domestic 3G demand

Chinese telecoms equipment maker ZTE recorded a 48 per cent rise in net profits in 2009 on the back of massive 3G demand from local operators. Profit increased to CNY2.46 billion (US$360.4 million) from CNY1.66 billion a year earlier. The telecoms regulator in the world’s largest market awarded 3G licences in early 2009, thus swelling domestic requirements for network infrastructure.

ZTE’s revenues grew 36 per cent to CNY60.27 billion from CNY44.29 billon. The proportion of revenues from within China surged 75 per cent to CNY30.3 billion, while foreign markets grew 11 per cent to CNY29.97 billion.

The vendor, which is listed in Hong Kong and Shenzhen, is expected to take advantage of additional 3G expenditure in its home market during 2010, however weaker spending than the previous year has been forecast by analysts.