ZTE forecasts strong improvement in Q3 profit

News General Global 21 AUG 2013
ZTE forecasts strong improvement in Q3 profit
ZTE has forecast a strong improvement in profits in the third quarter, following an increased focus at at the Chinese equipment maker on high-margin contracts over volume. The company said profit for the first nine months of 2013 will be between CNY 500 and 750 million, reversing a loss in the year-earlier period. This means third-quarter profit could be as much as twice the CNY 310 million reported for the first six months of the year. 

The first-half profit was up 26.6 percent from a year earlier, helped by cost reductions and a financial gain from the disposal of its stake in Shenzen ZNV Technology. Revenue in the first six months decreased 11.9 percent to CNY 37.58 billion, as Chinese operators slowed spending in preparation for the launch of LTE tenders and other operators around the world took a more cautious stance on investments. 

Revenues in China fell 10 percent year-on-year to just over half the total, or CNY 18.8 billion, while Asia and Africa each showed drops of over 20 percent, and revenues in Europe and the Americas were down just 4.4 percent. 

According to product, carrier network equipment recorded sales of CNY 19.1 billion, down 10.5 percent from a year earlier; terminals generated CNY 12.5 billion, down 12.5 percent; and software, services and other products had revenues of CNY 6.1 billion, down 14.8 percent. 

Categories:

General

Companies:

ZTE Belgium

Regions:

Global

Countries:

China

Tags:

Financial figures, Consumer devices, Network equipment, Handsets

Related Articles

GLOBAL 20 JAN 2014

ZTE returns to FY profit after strong Q4

ZTE reported a sharp improvement in profitability for the fourth quarter and full year. The Chinese equipment maker said it expects to report an annual profit of CNY 1.2-1.5 billion for 2013, compared to a loss of CNY 2.84 billion in 2012. It earlier reported a profit of CNY 552 million for the first nine months of the year. The company said it implemented stringent cost controls and exited low-margin businesses last year in order to return to profit and boost cash flow. Sales, administrative and research a

GLOBAL 22 OCT 2013

ZTE returns to profit, sales still down 10%

ZTE said it has returned to a net profit, helped by cost reductions, a greater focus on margins and extraordinary gains. The Chinese equipment maker recorded a net profit of CNY 552 million in the first nine months of the year, in line with its forecast of CNY 500-700 million. It said net profit was also positive in Q3, after unspecified extraordinary items. It expects to return to a full-year profit, after a loss of CNY 2.84 billion last year. Revenues were still down 10 percent in the nine-month period to

GLOBAL 22 JUL 2013

ZTE H1 sales down 11.6%, profits improve

ZTE reported a drop in first-half revenues, hurt by weaker market demand and currency effects. Revenues totaled CNY 37.71 billion, down 11.6 percent from a year earlier. ZTE blamed the fall on lower sales of GSM and UMTS equipment in its home market China and a drop in sales of GSM handsets and data cards across the world. Profitability improved however, helped by higher gross margins as well as cost reductions and operating efficiencies. After a financial gain from the disposal of its stake in Shenzen ZNV

CHINA 29 APR 2013

ZTE boosts profit on declining Q1 sales

Chinese telecom equipment and mobile phone maker ZTE reported net profit up 35.9 percent to CNY 205 million in the first quarter, compared to the year-earlier period. The improvement came from ZTE's operational review and a disposal gain from the sale of a controlling stake in telecom and video surveillance equipment subsidiary Shenzhen ZTE Netview Technology (ZNV) for CNY 1.3 billion. The company's gross margin has expanded for two consecutive quarters thanks to increasing cost control efforts. Revenue dec

GLOBAL 27 MAR 2013

ZTE posts FY loss on lower revenues, margins

ZTE reported annual revenue down 2.4 percent in 2012 to CNY 84.2 billion, hurt by delays in some network contracts and lower sales of feature phones. In its home market China, revenues were stable at CNY 39.6 billion, while sales abroad fell 4.5 percent to CNY 44.7 billion. Revenues from carrier network equipment fell 10.6 percent to CNY 41.6 billion, and sales of end-user devices dropped 4.1 percent to CNY 25.8 billion. In software, services and other products, where ZTE has been looking to expand in the g

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.