Chinese vendor says full-year bottom line could be as much as 25% higher than in 2016, excluding impact of U.S. fine
ZTE will report a 36.58% increase in net profit in the first three quarters of 2017 and expects its full-year bottom line to exceed previous years’ profits by some margin.
The Chinese equipment maker said net profit attributable to shareholders of the listed company for the nine months to the end of September came in at CNY3.91 billion (€499 million), based on a preliminary financial statement.
Revenues for the same period increased by 7.01% year-on-year to CNY76.58 billion.
ZTE said it expects to post a net profit of between CNY4.3 billion and CNY4.8 billion (€549 million-€613 million) for 2017 as a whole, driven by growth at its Carrier Networks and Consumer Business arms.
That compares favourably with 2016, when the vendor turned in a net loss of CNY2.36 billion, having booked a US$892 million (CNY6.14 billion, at earlier exchange rates) charge related to a hefty U.S. fine. ZTE was fined $1.19 billion by U.S. authorities for illegally shipped network equipment to Iran and North Korea.
Excluding the impact of that charge, ZTE’s 2016 net profit would have reached CNY3.83 billion, up 19.2% on the previous year.
The projected 2017 figure is 12.3%-25.3% higher than the 2016 number, excluding the impact of the fine.