ZTE raises performance outlook following strong H114 performance

ZTE reported a first half profit attributable to shareholders of CNY1.13 billion (US$183.75 million), compared with a prior year figure of CNY310 million, up 263.92 per cent, on revenue of CNY37.7 billion, which was essentially flat year-on-year.

Adding the current quarter to the mix, it is expecting net profit for the nine months in the CNY1.7 billion to CNY1.9 billion range, up between 208.2 per cent and 244.5 per cent.

For its home market, it said that during the first half it saw a “rapid growth in operating revenue” as operators ramped their 4G rollouts, although this was offset by lower handset sales. A little over half of ZTE’s revenue – CNY19.26 billion – came from China.

Internationally, it said that in addition to its strategy of focusing on major populous nations and mainstream operators, it “further optimised its market profile” to achieve “stable operations and quality growth”.

Some CNY21.84 billion of the company’s sales came from its operator networks activities (up 14.6 per cent year-on-year), with it stating that its “innovative Cloud Radio solution” had boosted 4G sales both at home and overseas.

Its terminals business accounted for CNY10.41 billion of sales (down 16.5 per cent), with the company having established a dedicated business department “focused on the shift to a more consumer-oriented and Internet-driven approach”.