China’s massive 3G network rollouts continue to power ZTE’s profit growth.
The Shenzhen-based vendor yesterday announced a 58.2% rise in Q3 net profit to 409 million yuan (€40m), with sales up 42.8% to 15.14 billion yuan.
“[T]he group reported substantial growth in operating revenue largely attributable to large-scale 3G network construction in the domestic China market,” the company said.
The carrier network group reported year-on-year growth of 47.3%, thanks mainly to sales of 3G and optical and data communication products, it said.
Handset and PC card sales grew 38.7%, which was in line with sales growth for 3G products. Revenue from telecom software, services and other products grew 17.9%, reflecting the growth fixed terminal sales.
In the coming quarters, ZTE said it would “seek increased presence in key markets such as Western Europe and North America” and to “strengthen cooperation with mainstream international carriers.”
ZTE, which has lined up $25 billion in vendor financing credit facilities, said it was well-placed to compete in foreign markets “on the back of its cost advantage, financing resources and customization abilities.”