Nokia saw its share value dip by five per cent to 4.82 euros after it issued a second-quarter result that missed the expectations of investors.
The Finnish network equipment manufacturer stated yesterday that its operating profit decreased by 240 million euros year-on-year to 334 million euros between April and June, falling 39 million euros short of the analyst mean forecast of 373 million euros, according to Reuters.
Its second-quarter revenue fell from 5.63 billion to 5.32 billion euros but exceeded the mean forecast of 5.15 billion euros.
Rajeev Suri, the CEO of Nokia, pointed out that the quarterly results were consistent with the network equipment maker's view that the first half of the year would be followed by a second half boosted by the accelerating adoption of fifth-generation (5G) wireless networks.
“Our view about the acceleration of 5G has not changed and we continue to believe that Nokia is well-positioned for the coming technology cycle given the strength of our end-to-end portfolio. Our deal win rate is very good, with significant recent successes in the key early 5G markets of the United States and China,” he said in a press release.
“We expect market conditions to improve further in the second half,” summarised Suri.
Nokia on Thursday also reiterated its outlook for and its ability to generate 1.2 billion euros in recurring annual cost savings in 2018.
Aleksi Teivainen – HT
Photo: Jussi Nukari – Lehtikuva
Source: Uusi Suomi