2023-07-20 08:13:00
Finnish telecom equipment giant Nokia on Thursday announced a 37% drop in net profit in the second quarter. The fall reflects the slowdown in the main market for the construction of 5G networks.
Between April and June, Nokia recorded a net profit of 289 million euros, compared to 460 million euros in the second quarter of 2022, according to its quarterly report. The group’s turnover remained rather stable: the group reported a drop of almost 3% in turnover to 5.7 billion euros.
“Through careful management of our costs, we were able to deliver a strong comparable operating margin…despite headwinds from our” mobile networks business, CEO Pekka Lundmark said in a statement. notes a ‘significant drop’ in investment by operators in North America.
Around 08:00 on the Helsinki Stock Exchange, the Nokia title took 0.56% to 3.53 euros.
Last week, the equipment manufacturer issued a profit warning, lowering its sales and operating margin forecasts for 2023. The group is engaged in a major battle to install 5G networks around the world, with its main competitors, Ericsson and the Chinese giant Huawei.
Its Swedish competitor Ericsson also fell into the red in the second quarter, in particular because of the decline in its network activity, particularly in North America. Ericsson and Nokia, which dominate the global 5G market with the Chinese giant Huawei, had warned in recent months of the slowdown in investment by their customers, the mobile operators, due to the global economic deterioration.
The two European groups have long suffered from the emergence of Huawei on their markets, but have benefited for several years from the restrictive measures taken once morest the Chinese giant by several Western countries, the United States in the lead.
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