Nokia recovers on 5G network restarts

Photo: EPA

The Finnish telecoms company Nokia enjoys a robust growth in demand for its 5G network technology supply as pandemic restrictions ease and the main rival Chinese Huawei is experiencing serious setbacks related to regulatory problems, Reuters reported. Nokia announced sales revenue and profits for the first quarter of 2021 that exceeded previous forecasts.

"We expect our typical quarterly earnings seasonality to be less pronounced in 2021," Chief Executive Pekka Lundmark said in a statement, adding that sales growth was strong across its network infrastructure business. Quarterly revenue rose 3% to 5.08 billion euros, beating a consensus figure of 4.72 billion, according to IBES data from Refinitiv. The good result was driven by strong growth in network infrastructure as well as mobile networks and on a constant currency basis total group sales were up 9% year on year.

Sales at Nokia's network infrastructure business, which includes optical and fixed network products, grew 28% to 1.73 billion euros, helped by demand from enterprise customers. Quarterly profit rose to 5 euro cents per share while adjusted profit was 7 euro cents per share. Analysts had expected 1 euro cents. Its comparable gross margin rose to 38.2% from 36.4% a year earlier, mainly driven by 5G growth. Nokia maintained its full year net sales forecast of between 20.6 billion euros to 21.8 billion euros, largely in line with expectations.

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