STOCKHOLM (Reuters) – Nokia reported quarterly operating profit below expectations on Thursday, even as the Finnish equipment maker continues to benefit from strong demand from phone companies rolling out 5G.
Like-for-like operating profit hit 658 million euros in the third quarter, down from 633 million a year ago, but below analysts’ expectations of 690.6 million euros, according to Refinitiv data. .
On the Stockholm Stock Exchange, Nokia shares fell 5.9% to 4.47 euros at 7:41 a.m. GM.
While macroeconomic and geopolitical uncertainty could impact some customers’ capital spending, Nokia expects constant currency growth in its markets in 2023, chief executive Pekka Lundmark said.
“Given our recent success in new 5G contracts in regions like India, which are expected to see strong ramp-up in 2023, we believe we are firmly on the path to market outperformance and growth. towards achieving our long-term margin objectives,” he said.
Net revenue increased 6% at constant currency in the quarter compared to the same period last year, to 6.24 billion euros, beating estimates at 6.06 billion.
However, operating margin declined year-on-year to 10.5% from 11.7% due to timing effects from Nokia Technologies contract renewals, the company said.
Its competitor Ericsson also reported earnings below expectations on Thursday.
(Report Supantha Mukherjee in Stockholm and Stine Jacobsen in Copenhagen, French version Kate Entringer, edited by Sophie Louet)
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