Nokia’s quarterly operating profit beats forecasts on 5G demand
2022.07.21 09:06
FILE PHOTO: Headquarters of Finnish telecommunication network company Nokia are seen in Espoo, Finland July 26, 2018. Lehtikuva/Mikko Stig via REUTERS
STOCKHOLM (Reuters) -Finnish telecom equipment maker Nokia (NYSE:NOK) reported on Thursday quarterly operating profit ahead of market expectations, boosted by strong demand for 5G gear from phone companies.
Second-quarter comparable operating profit rose to 714 million euros ($729.71 million) from 682 million last year, beating the 636.52 million euro mean forecast of 11 analysts polled by Refinitiv.
However, comparable operating margin fell to 12.2% from 12.8% due to timing effects of contract renewals and a one-off software deal last year.
Network infrastructure grew 12% in constant currency in the quarter, driven by strong demand in both fixed and submarine networks.
Net sales grew 11% to 5.87 billion euros, beating estimates of 5.60 billion.
Last week, rival Ericsson (BS:ERICAs)’s quarterly core earnings missed expectations as margins were hit by higher component and logistics costs.
($1 = 0.9785 euros)
