ZTE First-Quarter Profit Triples as Revenue Growth Fuels Strong Start to 2014
ZTE issues guidance for first-half profit of between RMB 800 million to RMB 1 billion, increase of between 158.1% to 222.6% from a year earlier
17 April 2014, Shenzhen, China – ZTE Corporation (“ZTE”) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a publicly-listed global provider of telecommunications equipment, network solutions and mobile devices, reported first-quarter profit more than tripled as the company posted increased revenue amid growth in the global 4G market.
Net profit attributable to shareholders of the listed company was RMB 622 million in the first quarter, an increase of 203.5% from a year earlier. Basic earnings per share was RMB 0.18, the top-end of the forecast issued by the company. Revenue rose 5.5% to RMB 19.05 billion.
Please download infographic for pictorial view of ZTE’s business performance in the first quarter:
In the first half of the year, net profit attributable to shareholders of the listed company will be between RMB 800 million and RMB 1 billion, an increase of between 158.1% to 222.6% from a year earlier, according to guidance published by the company today. In the first half of the year, ZTE’s financial performance will benefit from the company’s focus on profitability, improved profit margins in international operations and the growth of revenue from sales of 4G infrastructure systems in China as a proportion of total revenue.
In the global telecommunications industry, opportunities are focused in wireless and broadband networks, as well as supporting transmission infrastructure. The continued development of the mobile Internet is sustaining demand for smart phones and devices, in addition to the growth of strategically important sectors such as cloud-computing, Internet of Things and Smart City.
In China, the rollout of 4G networks and infrastructure has ushered in a new wave of investment. ZTE will continue to track the plans of operators and unveil new technology innovations to maintain the company’s leading position in the market.
Internationally, ZTE will remain focused on supporting larger markets and major multinational operators, being responsive to customer needs and driving value creation through innovation. The company will also strengthen operational and project management to consolidate its industry position.
Looking ahead to the next reporting period, demand for broadband networks, especially mobile broadband based on 3G and 4G technologies will continue to drive investment in the global telecommunications industry. ZTE will steadfastly pursue its strategy to sharpen the company’s focus in key operations and target business breakthroughs. The company will execute its plans scientifically and objectively, striving for innovations in both technology and business models to realize breakthroughs in financial performance, as well as maintaining effective cost controls.