ZTE expects to have doubled its profit in 2014

Dylan Bushell-Embling
20 Jan 2015
00:00

ZTE expects to report a near doubling of profit for calendar 2014, fueled by demand for LTE network equipment and smartphones.

The company's unaudited results show a 94.2% higher net profit of 2.64 billion yuan ($424 million).

Revenue meanwhile grew 8% to 81.24 billion yuan, while earnings per share were up 97.4% to 0.77 yuan.

China's TD-LTE and FDD LTE rollouts and growth in ZTE's 3G and 4G smartphone operations both contributed to the improved profits.

Earnings were also augmented by improved gross profit margins as the company focused on improving contract profitability, as well as tighter cost controls, ZTE said.

ZTE's announcement comes in the wake of reports that the vendor and domestic rival Huwaei are expected to pick up more than half of the value of China Telecom's second-phase hybrid FDD-TDD LTE trial rollouts.

ZTE plans to publish its full-year results on March 25. The company reported a record 1.13 billion yuan profit for the first half of the year.

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