China's ZTE 2014 profit almost doubles on smartphones, 4G roll-out

HONG KONG (Reuters) - Chinese telecom equipment maker ZTE Corp posted a 94 percent rise in 2014 net profit on Wednesday, in line with its own forecast, due to strength in its smartphone business overseas and high-speed 4G network division at home. The Shenzhen-based company recorded profit of 2.63 billion yuan ($423.4 million) from 1.36 billion yuan a year earlier, in line with the company's forecast of 2.6 billion yuan. Operating revenue rose 8.3 percent to 81.4 billion yuan. ZTE is expanding its handset business overseas, bringing about a more than 50 percent rise in global marketing expenses for 2015. The company aims to become a top 3 smartphone vendor in the United States by 2017, where its smartphone shipments jumped more than 50 percent in 2014. ZTE is also benefiting from the adoption of fourth-generation mobile networks in China, where the company could build up to half a million 4G base stations in 2015, according to Phillip Capital. ZTE and rival equipment vendor Huawei Technologies Co Ltd each won over 25 percent of the $3.2 billion 4G tender of No.1 mobile carrier, China Mobile Ltd. ZTE's Hong Kong-listed shares closed 0.4 percent higher on Wednesday, versus a 0.5 percent rise in the benchmark Hang Seng Index. ($1 = 6.2116 Chinese yuan renminbi) (Reporting by Yimou Lee)