ZTE on Wednesday talked up the carrier networks business that helped it to grow net profit to 1.62 billion yuan (€221 million) in the first half of this year, but glossed over a decline in mobile handset sales.
The Chinese vendor confirmed last month’s preliminary results statement in which it claimed a 43% increase in net profit for the six months to the end of June.
It reiterated that its results were driven by an increase in sales of LTE equipment to telecoms operators.
Indeed, ZTE’s carrier networks business generated CNY28.5 billion in revenues in the first half, an increase of 30.6% year-on-year.
The vendor highlighted growth in revenue from 3G equipment in China, FDD LTE equipment at home and overseas, and TD-LTE kit in the international market, amongst other things.
The carrier networks unit contributed 62.1% to overall operating revenues in the first half of this year, up from 57.9% in 1H 2014.
ZTE’s total operating revenues came in at CNY45.9 billion (€6.3 billion), up by 21.8%.
Handsets accounted for a 21.7% of the total, down from 27.6% a year earlier, with handset revenues falling by 4.3% to CNY9.96 billion.
The decline was mainly attributable to lower revenues from its home market, ZTE said.
The firm said it "posted strong growth in key markets," including the U.S.; "ZTE consolidated its position as the most successful Chinese company in the U.S. smartphone market," it said, without disclosing any figures.
ZTE noted that it will add to its AXON smartphone line in the second half of the year as part of a bid to establish itself in the high end of the smartphone space.
