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ZTE Lost $1 Billion in 2018 Despite Last Quarter Rebound

ZTE Lost $1 Billion in 2018 Despite Last Quarter Rebound

By Reuters | Updated: 28 March 2019 12:13 IST

China's ZTE made a net profit of CNY 276 million in the fourth-quarter as it recovered from costly US sanctions which dragged it to an overall 2018 loss of CNY 7.0 billion ($1 billion).

The world's fourth-largest telecommunications equipment maker by market share was forced to stop most business between April and July last year due to US sanctions. It paid $1.4 billion to lift these and reported its worst half-year loss of CNY 7.8 billion in August.

ZTE's 2018 loss announced on Wednesday was just within its earlier guidance range of CNY 6.2 billion to 7.2 billion, but was deeper than the average estimate of a loss of CNY 6.2 billion by 10 analysts, according to Refinitiv Eikon data.

The company had expected a first-quarter net profit of 800 million to CNY 1.2 billion, against a net loss of CNY 5.4 billion year earlier. It reported a profit of 4.57 billion yuan in 2017 before it became embroiled in a crippling row with the US government over violations of export restrictions.

ZTE said its revenue for the quarter ending in December was CNY 26.7 billion, while its full-year revenue dropped 21.4 percent to CNY 85.5 billion, against an average estimate of CNY 87 billion by 12 analysts.

© Thomson Reuters 2019

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