Better quarterly profit for Nokia but network unit set for more decline
Helsinki — Nokia posted better-than-expected quarterly profits on Thursday, boosted by a one-off patent payment from China’s Huawei, but said its network business was set for another year of decline, despite promising North American sales. The mobile industry, dominated by Huawei, Nokia and Sweden’s Ericsson, is weathering the toughest part of a decade-long cycle as demand for 4G gear falls, while spending on new, mass-market 5G networks are unlikely before 2019 or 2020. Nokia’s fourth-quarter group earnings before interest and taxes (ebit) increased 7% from a year ago to €1bn, well above analysts’ average forecast of €888m in a Reuters poll. However, the profits were boosted by a one-off patent payment of €210m and operating profit from the networks business fell 25% year on year. CEO Rajeev Suri said that while Nokia’s network sales would remain weak this year, a potential rebound of spending by operators in North America could lessen the decline. "For 2019 and 2020, we expect mar...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.