ZTE Q2 and 1H 2024 Financial Performance

#ZTE #5G #5.5G #RAN #ejlwireless #ericsson #nokia #samsung #huawei

EJL Wireless Research has just published its quarterly financial analysis on ZTE Corporation. the company reported its Q2 2024 results on August 16, 2024. Consolidated sales were up 4.4% YoY in local currency and up 3.5% in USD sequentially . On a YoY basis, sales were up 1.1% in local currency and down 2.1% in USD.

Exhibit 1: ZTE Corporation Consolidated Sales, Q1 2021 to Q2 2024

So how did they do on a comparative basis to Ericsson, Nokia, and Samsung Networks? While the exhibit below is not a true 1:1 comparison as the ZTE results include their wireline and enterprise network revenues, it does provide a glimpse into the telecom sector. ZTE breaks out it Carriers' Network revenues and financial data for its interim (half yearly) and annual reports but does not do this for each quarter. In analyzing the results and assuming the wireless portion of their Carriers' Networks revenues fell at the same rate as the overall business division, ZTE outperformed its peers by only declining 8.6% for 1H 2024 YoY comparisons.

This is significant given a large portion (>40%) of its revenues are from the local People's Republic of China (PRC) region. With ~60% of sales from international markets, ZTE is also seeing the impact of telecom operators "de-levering their balance sheets and debt." Additionally, management cited that the local telecom market in the PRC was "stable" which to EJL Wireless Research, means "flat" and not growing. So China is also slowing down like the rest of the world.

Exhibit 2: Wireless RAN Supplier Sales, 1H 2024 vs 1H 2023

* Carriers' Network sales which includes Wireless, Wireline and Enterprise

Obviously, there is much more detailed information in the report so spease check out the website at https://ejlwireless.com/research-briefs/ for more information about these financial research brief reports.