Chinese vendor ZTE reported a 42 per cent increase in Q1 net profit as its mobile ICT strategy started to generate new growth avenues.
Its income increased to CNY883 million ($142 million) in the first three months, while revenue rose 10.2 per cent to CNY21 billion. Operating revenue from telecoms software systems, services and other products increased by 23.4 per cent in the first quarter.
Under its new mobile ICT strategy, it is focused on cloud computing, big data, smart city and high-performance routers to help operators and enterprise customers capitalise on opportunities in the era of mobile broadband and the internet of things, the company said.
Revenue from carriers’ networks increased by 9 per cent compared to the same period last year, with growth driven by wireless communication systems, wireline switch and access systems, routers and router switches.
Operating revenue from handsets rose 7 per cent compared to the same period last year, reflecting mainly higher sales of 4G handsets.
The company said the global telecoms industry continues to benefit from the large-scale deployment of 4G networks. The company stated that the issuance of LTE-FDD licences in China has driven an increase in investments in overall network equipment, while the implementation of China’s broadband strategy coupled with increasing demand for the upgrade of existing fixed-line broadband networks has ushered in a phase of rapid development for broadband networks.