Nokia: Operating profit exceeds expectations in the second quarter
STOCKHOLM (Reuters) – Nokia reported better-than-expected quarterly results on Thursday, buoyed by demand for fifth-generation (5G) mobile network equipment.
The Finnish group posted a like-for-like operating profit of 714 million euros in the second quarter, compared to 682 million in the corresponding period last year, beating the average forecast of 636.52 million euros from 11 analysts. surveyed by Refinitiv.
The like-for-like operating margin, however, increased to 12.2% from 12.8% previously due to the timing effects of contract renewals and a one-off software deal last year.
The network infrastructure division posted growth of 12% at constant exchange rates over the quarter, thanks to strong demand for fixed and submarine networks.
Total net revenue rose 11% to 5.87 billion euros, beating consensus of 5.60 billion.
Last week, Sweden’s Ericsson, Nokia’s rival, reported quarterly profit below expectations as rising component and logistics costs weighed on its margins.
(Report Supantha Mukherjee; French version Valentine Baldassari, editing by Kate Entringer)
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