Nokia posts sharp quarterly profit fall, sees 5G accelerating

Most of the profit was generated by the company's profitable patent licensing business, which grew 136 percent.

Published: 26th April 2018 11:25 AM  |   Last Updated: 26th April 2018 11:25 AM   |  A+A-

Reuters file image used for representational purpose only.

By Reuters

HELSINKI: Network equipment maker Nokia on Thursday posted weaker-than-expected quarterly profits as telecom operators, particularly in North America, held off spending, but it expressed confidence that momentum was building later in 2018.

The Finnish company, which competes with Sweden's Ericsson, Huawei and ZTE, both of China, said the battered network industry was poised to bounce back as commercial deployments for next-generation 5G networks would start to take off later this year.

"We see strong momentum building for the full year despite a slow start in networks... We have clear visibility to 5G deals for large-scale commercial rollouts in United States in the second half of the year," CEO Rajeev Suri said in a statement.

First-quarter group earnings before interest and taxes (EBIT) fell 30 percent from a year ago to 239 million euros ($291 million), clearly below analysts' average forecast of 369 million euros in a Reuters poll.

Most of the profit was generated by the company's profitable patent licensing business, which grew 136 percent.

Nokia said it expected the global networks industry to fall 1-3 percent this year, a slight improvement from its previous forecast of a fall of 2-4 percent, and added its own sales would outperform the wider telecom equipment market.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL2018