ZTE lifts profit 32% on global growth

Dylan Bushell-Embling
18 Mar 2011
Daily News

China's ZTE stormed to a 32.2% increase in profit in 2010, thanks largely to growth in international markets.

The vendor reported a net profit of 3.25 billion yuan ($494.3 million), and grew its revenue for the year 21% to 70.26 billion yuan.

Revenue from international operations grew 27.45% to 38.06 billion yuan, over half the vendor's total operating revenue.

ZTE said the US and European markets contributed the largest portion of overseas revenue for the first time, with the markets recording growth of 50%.

The company has been making a concentrated push into these markets, but has repeatedly claimed it is being held back by unfair prejudice in the US.

ZTE is also facing competition probes in Europe over allegations the Chinese government unfairly subsidizes its products.

Despite this, ZTE said its terminal products gained full access to the four leading US carriers during the year, and the company brokered deals with European operators including France Telecom and KPN.

Revenue from China grew 5.9% to 32.19 billion yuan, but revenue from the rest of Asia declined 3.87% to 12.69 billion yuan.

R&D and most other expenses also increased as a result of the expansion efforts.

ZTE has previously forecast it will achieve similar revenue growth this year. In its annual report, ZTE said it intends to expand into the government and enterprise segments in 2011, compared to its prior strategy of focusing mainly on mainstream telecom operators.

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