April 17, 2017 / 10:15 AM / a year ago

ZTE Corp says first-quarter profit up 27.8 percent y/y

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.

FILE PHOTO: ZTE's logo on its R&D center is seen in Beijing, China, in this March 22, 2016 file photo. REUTERS/Kim Kyung-Hoon/File Photo

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

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