ZTE profit grew 36.6% in 9M17

ZTE has revealed it expects to report a solid 36.6% growth in net profit for the first nine months of 2017, with its results bolstered by growth in its carrier networks and consumer businesses.

The Chinese vendor has published preliminary results [PDF] estimating a net profit for the nine month period of 3.9 billion yuan ($589.1 million).

Operating revenue grew an estimated 7% over the same period to 76.58 billion yuan, while operating profit surged 455.1% to 5.28 billion yuan. Gross profit margins are expected to have been stable at 31.64%.

The bottom line was also aided by pre-tax investment income of around 426 million yuan related to the sale of 10.1% of mobile phone subsidiary Nubia Technology, as well as 1.75 billion yuan in investment income from its remaining 49.9% stake in the venture.

For the full year, ZTE is anticipating a net profit of between 4.3 billion and 4.8 billion. This would be a significant turnaround from the 23.57 billion yuan loss recorded in 2016, which was the result of a $892.3 million settlement agreement  with the US government.

ZTE paid the penalty to settle an investigation over allegations that the company shipped telecoms equipment containing US components to Iran, in contravention of US trade sanctions on the nation.