Nokia third-quarter operating profit rises to 658 million euros

MOSCOW, 20 Oct – PRIME. Nokia reported lower-than-expected quarterly operating income today, although the Finnish telecommunications equipment maker continues to benefit from strong demand from carriers amid the rollout of 5G networks, Reuters reported.

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Nokia’s third-quarter comparable operating profit rose to €658 million from €633 million a year earlier. The consensus forecast of 10 analysts, compiled by Refinitiv, suggested a figure of 690.6 million euros.

CEO Pekka Lundmark said that while increased macroeconomic and geopolitical uncertainty could affect the capital expenditures of some customers, Nokia forecast growth in its markets in 2023 at constant exchange rates.

“Given our recent success with new 5G deals in regions like India set to gain momentum in 2023, we believe we can confidently outperform the market and move closer to meeting our long-term margin targets,” the CEO added.

Net sales of Nokia in the 3rd quarter at constant exchange rates rose by 6% to 6.24 billion euros, beating the forecast at 6.06 billion euros.

At the same time, the comparable operating margin decreased from 11.7% to 10.5%. The improvement in profitability in the mobile networks and network infrastructure businesses was offset by the impact of contract renewals in Nokia Technologies, the company explained.

Rival Ericsson also reported lower-than-expected 3Q underlying earnings today.

Nokia shares have lost about 15% since the beginning of the year, while Ericsson shares have fallen 28% and the European telecommunications sector – 15%.