ZTE Corp says Q1 profit up 27.8 pct y/y

Sijia Jiang

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)