HONG KONG (Reuters) - China’s ZTE Corp (000063.SZ)(0763.HK) said on Thursday nine-month net profit rose 36.6 percent to 3.9 billion yuan ($588.14 million), in line with its own forecast, boosted by higher revenue and sale of a stake in its smartphone unit..
Revenue rose 7 percent to 76 billion yuan due to growth in its carriers’ network and consumer business, the telecommunications equipment and systems company said in a stock exchange filing.
The results were in line with a preliminary profit figure ZTE flagged last week.
Jefferies analyst Edison Lee said that implied ZTE’s third- quarter revenue dropped 5 percent, though its full- year profit forecast was in line with expectations.
ZTE said in the same filing it expects 2017 net profit to be between 4.3 billion yuan and 4.8 billion yuan, from a loss of 2.36 billion yuan last year, on higher revenue and a one-off factor.
ZTE posted a loss for 2016 after it settled a sanctions case with U.S. regulators for violating U.S. export restrictions to Iran and North Korea, by paying a penalty of $892 million.
Reporting by Sijia Jiang; Editing by Jacqueline Wong