ZTE Corporation posted a 191% increase in third-quarter 2014 profit as the company recorded growth in its smartphone and 4G equipment operations. It also recorded a Q3 2014 revenue growth of 24% driven by strong performance in Europe, the United States and China.
Net profit attributable to shareholders of the listed company increased to RMB 703m (£71.6m) in the quarter ended 30 September 2014. Third-quarter revenue rose 24% to RMB 21.1bn (£2.1bn), as sales of handsets increased more than 40% from a year earlier. ZTE also posted growth in revenue from Carriers’ Networks, including 4G systems, in addition to Telecommunications Software Systems.
In the first nine months, net profit increased 232% to RMB 1.83bn (£186m), while revenue rose 7.8% to RMB 58.8bn (£5.9bn). ZTE is forecasting that full-year net profit will be between RMB 2.5bn (£254m) to 2.8bn (£285m) in 2014, representing year-on-year growth of between 84.1% and 106%.
ZTE said it experienced strong growth in its operations in Europe, North America and China, as the company benefited from its strategy to focus on key products including 4G LTE, 100G optical networks, Gigabit passive optical networks, high-performance network routers and premium smartphones.
In the 4G LTE market in China, ZTE said it consolidated its position as the leading vendor. The robust business performance is indicative of the company’s growing competitiveness, it claimed.
In the third-quarter, ZTE posted an over-40% increase in revenue from handset terminals, as sales in key markets including China, the United States and Japan recorded growth.