ZTE posted its first half net profit rushes 21.21% on year to $81.3 million from $67.1 million a year earlier, following robust growth from its international operations. First six months of 2008 the Chinese equipment maker reports group revenue increase by 29.52% from 2007 to $2.88 billion from $2.22 billion. Its international operations has driven the improvement, which shows sales growth of 58.93% to $1.85 billion from $1.16 billion in 2007. ZTE’s African revenue shoots up to 107.24% during the first half of the year to $464.14 million.
ZTE’s board of directors said that the group continued to report stable business development in the first six months of 2008 as it maintained extensive yet in-depth cooperation with domestic as well as international mainstream carriers. According to a vendor, Competition in global telecommunications continued to intensify during the first six months of 2008, as top-flight international carriers and equipment makers sought to capture new market shares in their respective domains.
ZTE said the restructuring of the country’s telecoms industry has presented fresh challenges as well as opportunities. Meanwhile, the trend of mobile communications expanding rapidly at the expense of fixed-line business continued,it said. The number of mobile users in the country has risen to 600.76 million in the first half, up 53.5 million from the end of 2007. ZTE said it expects “a clearer picture of competition among domestic telecommunications carriers” to emerge, for second half. Chinese equipment maker said that while it expects its international operations to maintain good momentum, it warned that economic uncertainty could leave it vulnerable to foreign exchange rate changes. “The expansion of the group’s international business demands higher risk aversion abilities to cope with issues arising from economic, political and legal differences in various countries,” ZTE further added.