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ZTE H1 2011 Profit Down 12% YoY

ZTE, 8/30/11

Chinese telecom equipment and terminal manufacturer ZTE (0763.HK; 000063.SZ) today announced a 21.5% increase in operating revenue to RMB 37.34 bln for the six months ended June 30, 2011.

Net profit for the first six months of 2011 fell 12.3% to RMB 769 mln.

Domestic revenue reached rose 6.8% YoY to RMB 16.53 bln, accounting for 44.3% of total operating revenue for H1 2011. Overseas revenue was RMB 20.81 bln, up 36.4% YoY and accounting for 55.7% of total operating revenue.

Revenue from Europe, the US, and Oceania grew 62% YoY to RMB 8.99 bln, accounting for 24.1% of total revenue. ZTE Asia-Pacific (excluding China) accounted for 18.2% of revenue, with revenue up 29.7% YoY to reach RMB 6.81 bln, while Africa accounted for 13.4% of revenue, rising 12.3% YoY to reach RMB 5.01 bln.

By product divisions, revenue from operator networks rose 8% YoY to RMB 20.52 bln. Revenue from terminal products grew 43.96% YoY to RMB 11.21 bln. Revenue from telecommunication software systems, services and other products rose 42.3% YoY to RMB 5.59 bln.

In the first six months of 2011, ZTE won 23 LTE contracts worldwide, with more than half in Europe, America, Japan and other developed regions.

During the first half of 2011, ZTE sustained rapid growth in the sale of its terminal products, reporting 43.96% year-on-year growth in sales revenue. Sales for smart terminal products increased 400% YoY.

To view ZTE's full earnings report, please click here.

Keywords: network construction 4G LTE handset tablet computer hardware smartphone wireless supply contract overseas profit revenue telecom 000063.SZ 0763.HK telecom equipment ZTE H1 2011 fiscal report

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