April 17, 2017 / 10:12 AM / 4 months ago

ZTE Corp says Q1 profit up 27.8 pct y/y

HONG KONG, April 17 (Reuters) - Chinese telecom equipment maker ZTE Corp on Monday said its first-quarter net profit rose 27.8 percent on demand for its carriers' network and consumer business.

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. ($1 = 6.8852 Chinese yuan renminbi) (Reporting by Sijia Jiang; Editing by Himani Sarkar)

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