ZTE raises H1 profit forecast
Telecom solutions provider ZTE Corporations has raised its forecast for the first-half profit on the back of strong momentum in its 4G infrastructure operations. The company expects that net profit to be between RMB 1 bn and RMB 1.15 bn in the first six months, a rise between 223%-271% from the previous year. It has earlier given a guidance of between RMB 800 mn to RMB 1 bn. ZTE said in a statement, “ZTE continued to strengthen cost control and operational management, achieving improved profitability in international contracts with 4G infrastructure accounted for an increased proportion of revenue.” Besides, in the operators division, the company retained its position as the leading vendor of 4G infrastructure to China Mobile, achieving increased market share. ZTE consolidated its position as the leading vendor of 4G infrastructure to China Telecom and China Unicom. The company said that the launch of new LTE multiband smartphones will be driving the growth as 4G devices that will account for 40% of total terminals shipments in 2014. ZTE achieved strong performance in the United States, especially in the prepay handset market, benefiting from the availability of new innovative products and cooperation with partners. ZTE has also bagged FDD-LTE licenses in China, and has invested in 4G networks in markets such as Japan and India.