Net profits up 23% YOY during period.
ZTE Corporation (ZTE) (H share stock code: 0763.HK / A share stock code: 000063.SZ), a leading global provider of telecommunications equipment and network solutions, announced today its results for the quarter ended 31 March 2012.
ZTE reported operating revenue of $2.96 billion in Q1 2012, an increase of 29.46% over the same period last year. Net profit attributable to shareholders was $22.99 million, an increase of 23.85% over the same period last year. Basic earnings per share were $0.00635.
ZTE’s revenue generated by carrier networks rose by 13.65% compared to the same period the previous year, a reflection of an increase in revenue generated from sales of optical and data communications products. Terminal product revenues were up 27.33% compared to the same period last year, driven primarily by sales of 3G handsets. The company saw a large increase in sales of services and fixed terminals during the quarter.
During the reporting period, investments made by mobile carriers primarily focused on construction and optimisation of mobile broadband and wireline broadband networks. This was a result of more in-depth 3G network deployments and the commercial deployments of 4G.
In China, the company focused on further penetration of the broadband market, increasing transmission speeds and deploying mobile Internet.
Internationally, ZTE reported relatively fast growth in operating revenue from international markets. This was a result of sustained growth in the global telecommunications market and product co-operation efforts with mainstream global carriers.
In addition to its focus on competitively priced smartphones (approximately $158), the company will continue to emphasise its competitive mid- to high-end terminals, including the U970 model and upgraded models such as the U880D/U880E. ZTE will look to expand its sales of these products in the US, Japan and Europe. The company will also seek to maintain the growth of its other products such as telecommunications services and government enterprise solutions. The company sees these areas, together with its network solutions and terminal products, as important for growth moving forward.
In the future, ZTE will continue to focus on opportunities in capacity expansion and upgrades of global wireless networks, national broadband strategies and developments in the smart terminal and ICT sector. The company will build on its ongoing innovation initiatives with the goal of transforming into a solutions-based business. ZTE is committed to building company revenue and improving operating efficiency.
ZTE is a publicly-listed global provider of telecommunications equipment and network solutions with the most comprehensive product range covering virtually every telecommunications sector, including wireless, access and bearer, VAS, terminals and professional services. The company delivers innovative, custom-made products and services to over 500 operators in more than 140 countries, helping them to meet the changing needs of their customers while growing revenue. In 2011, ZTE’s revenue increased by 29% to $13.7 billion. Its overseas operating revenue grew 30% to $7.4 billion during the period, accounting for 54.2% of overall operating revenue. ZTE commits 10% of its annual revenue to research and development and has leadership roles in several international bodies devoted to developing telecommunications industry standards. ZTE is committed to corporate social responsibility and is a member of the UN Global Compact. The company is China’s only listed telecoms manufacturer that is publicly traded on both the Hong Kong and Shenzhen Stock Exchanges (H share stock code: 0763.HK / A share stock code: 000063.SZ). For more information, please visit www.zte.com.cn.