(Reuters) – Finnish telecommunications equipment maker Nokia reported a smaller-than-expected rise in first-quarter comparable operating profit on Thursday due to lower revenue linked to lower spending in 5G technology from operators.
Operating profit, which excludes certain items of income and expenses, increased to 597 million euros from 479 million euros the previous year, driven by cost reductions while turnover at constant exchange rates fell by 19%.
Four analysts surveyed by LSEG forecast, on average, a comparable profit of 663 million euros.
Nokia CEO Pekka Lundmark said continued improvement in order intake despite weak markets is expected to boost performance in the second half of 2024.
“We remain confident in a stronger second half and achieving our full-year outlook,” he said in a statement.
The company reiterated its target for comparable operating profit in 2024 of between 2.3 billion and 2.9 billion euros.
Swedish rival Ericsson said on Tuesday its sales would normalize in the second half after a period of decline.
The two companies have cut thousands of jobs and are cutting costs to cope with weak demand for 5G equipment, particularly in North America and India.
(Reporting Olivier Sorgho in Gdansk; French version Mathias de Rozario, edited by Blandine Hénault)
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