Nokia: second-quarter operating profit beat expectations

STOCKHOLM (Reuters) – Nokia posted a better-than-expected quarterly report on Thursday, boosted by demand for fifth-generation (5G) mobile network equipment.

The Finnish group reported a like-for-like operating income of €714 million in the second quarter, up from €682 million in the same period last year, beating the median forecast of €636.52 million by 11 analysts surveyed by Refinitiv.

However, the comparable operating margin increased to 12.2% from 12.8% previously due to the temporary effects of contract renewals and a one-off software deal last year.

The Network Infrastructure Division posted 12% growth at a constant exchange rate for the quarter, driven by strong demand for fixed and submarine networks.

Total net revenue rose by 11% to 5.87 billion euros, beating the forecast of 5.60 billion euros.

Nokia’s Swedish competitor Ericsson reported lower-than-expected quarterly earnings last week as rising costs for parts and logistics weighed on its bottom line.

(Report by Supantha Mukherjee; French version by Valentin Baldassari, edited by Kate Entringer)

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