ZTE Post US$1B Loss After US & Telstra Blow
Chinese telecommunications company ZTE has reported a net profit of 276 million yuan in Q4 as it recovers from U.S. sanctions which cost the company an overall 2018 loss of 7.0 billion yuan (US$1 billion).
The company reported full-year 2018 revenues of 85.5 billion yuan (US$12.7 billion), down 21.4% year-on-year, and an expected net loss of almost 7 billion yuan (US$1 billion), versus a net profit of 4.55 billion yuan in 2017.
Following the implementation of U.S. sanctions, the world’s fourth-largest telco was shackled to the point it had to stop most business efforts and nearly going to administration.
ZTE paid a US$1.4 billion penalty to lift these sanctions and placed a further $400 million in escrow leading to its worst half-year loss report of 7.8 billion yuan.
Despite the big losses, ZTE says it is on track to turn a profit, thanks in large part to its heavy investment in 5G research and development.
ZTE was among the first companies to introduce a 5G smartphone, its flagship Axon 10 Pro 5G handset revealed at MWC 2019, not expected to land in Australia until our 5G network has matured.