HONG KONG (Reuters) - Chinese telecom equipment maker ZTE Corp (000063.SZ)(0763.HK) on Monday said its first-quarter net profit rose 27.8 percent on demand for its carriers’ network and consumer business.
Profit for the January-March quarter rose to 1.2 billion yuan ($174.29 million) from 949.5 million yuan a year ago, the company said in a filing to the Shenzhen Stock Exchange.
Operating revenue rose 17.8 percent to 25.7 billion yuan. One analyst expected the firm to post a revenue of 22.69 billion yuan, Thomson Reuters data shows.
ZTE last month settled a sanctions case with U.S. regulators that had loomed over the company over the past year by paying a penalty of $892 million for violating U.S. export restrictions to Iran and North Korea. ZTE posted a 2.36 billion yuan loss for 2016 due to the fine.
Analysts said ZTE’s removal from a trade blacklist in the United States following the settlement clears away a long-standing overhang and that the company’s outlook is now expected to benefit from China’s 5G development.
Reporting by Sijia Jiang; Editing by Himani Sarkar