24 Jul 2013 11:38 AM

ZTE revenues decline by 11.6% to £4 billion in the first half of 2013

Net profit up by 23.5% year-on-year, but revenue hit by lower demand for GSM and UMTS infrastructure products and lower sales of GSM handsets and data cards

ZTE revenues decline by 11.6% to £4 billion in the first half of 2013

ZTE Corporation, the Chinese telecommunications equipment, network solutions and mobile devices provider, issued some guidance this week (22 July 2013) for its financial results in the first-half of 2013.

Preliminary financial results show that the company achieved a net profit attributable to shareholders of RMB 302 million (£32 million) in the first half of 2013, a 23.5% increase compared with a year earlier.

ZTE said the company has now achieved two consecutive quarters of positive results. In the first half of 2013, ZTE’s revenue was RMB 37.7 billion (£4 billion), a decrease of 11.6%, a result of lower demand for GSM and UMTS products in China, and lower sales of GSM handsets and data cards.

ZTE’s gross profit margin gained in the first half, a result of improved cost controls and a focus on efficiency. The company’s sales, administrative and research and development expenses declined significantly, and the company recognized a financial gain from the disposal of a subsidiary.

In the first half of 2013, ZTE noted that the Renmenbi appreciated in value against the US dollar, resulting in less favourable foreign exchange comparisons with a year earlier. ZTE was also affected by a depreciation in the Euro, Japanese Yen and some emerging market currencies against the US dollar.

In the first half of 2012, ZTE posted revenues of RMB 42.64bn (£4.22bn) for the six months ending 30 June 2012, an increase of 15.2% year-on-year. Pre-tax profit (as opposed to net profit cited above) in the period was RMB 656m (£65.2m), a decrease of 48.5% year-on-year.  

See also:

ZTE Corporation posts losses of up to £293m for 2012

ZTE pre-tax profit falls by 48.5% in first half of 2012

Ericsson year-on-year sales flat for second quarter of 2013

Sales fall by 17% at Nokia Siemens Networks in Q2 2013

Huawei posts revenues of £12 billion for first half of 2013

Alcatel-Lucent posts net losses of £768m in second quarter of 2013



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