One-off gains drive ZTE profit - Mobile World Live

One-off gains drive ZTE profit

09 MAR 2022

ZTE registered profit and revenue growth in 2021, as gains in its consumer and enterprise businesses made up for slowing sales of network equipment in overseas markets.

In an earnings report, ZTE stated uncertainties around Covid-19 (coronavirus) in overseas markets put considerable pressure on network investment in the short term, including on 5G rollouts.

But it noted the pandemic had also driven demand for communication services for schooling and working.

Net profit in 2021 grew 59.9 per cent year-on-year to CNY6.8 billion ($1.1 billion), buoyed by an extraordinary gain of CNY3.5 billion. Revenue increased 12.9 per cent to CNY114.5 billion, with domestic sales growing 14.7 per cent to CNY78.1 billion and international 9.1 per cent to CNY36.5 billion.

Operator network revenue grew 2.3 per cent to CNY75.7 billion, though this was down on the 11.2 per cent growth recorded in 2020.

ZTE’s consumer business revenue grew 59.2 per cent to CNY25.7 billion, driven by a more than 80 per cent rise in home internet equipment and a 40 per cent rise in handsets.

Revenue from its government and enterprise business increased 16 per cent to CNY13.1 billion, with domestic sales increasing 40 per cent.

R&D spending increased 27 per cent to CNY18.8 billion, 16.4 per cent of revenue, which was up 1.8 percentage points.

Back

Author

Joseph Waring

Joseph Waring joins Mobile World Live as the Asia editor for its new Asia channel. Before joining the GSMA, Joseph was group editor for Telecom Asia for more than ten years. In addition to writing features, news and blogs, he...

Read more

Related

Tags