Chinese vendor ZTE revised upwards its H1 net profit guidance to between CNY1 billion ($161 million) and CNY1.15 billion, citing improved operational efficiencies, better profitability on international contracts, and 4G infrastructure sales accounting for a greater proportion of revenue.

Previous H1 guidance on net profit attributable to shareholders was between CNY800 million and CNY1 billion.

The revised forecast means that, year-on-year, ZTE expects earnings in the first six months to increase between 223 per cent and 271 per cent.

ZTE claimed it is now the “leading vendor” of 4G infrastructure to China Mobile – the country’s largest mobile operator – and that it had “consolidated” its leading 4G position with China Telecom and China Unicom.

And following the launch of new LTE multiband smartphones this year, ZTE forecasts that 4G devices will account for 40 per cent of total terminal shipments in 2014.

The Chinese supplier also said it achieved a strong devices performance in the US, especially in the prepaid handset market,

ZTE expects it will benefit from the award of FDD-LTE licences in China, as well as investment in 4G networks elsewhere, particularly in Japan and India.

It added, too, that consolidation in the telecoms market in Europe would also offer “new opportunities” but did not elaborate on what those might be.