HELSINKI (AP) — Wi-fi and fixed-network tools maker Nokia on Thursday reported a smaller-than-expected revenue and a double-digit fall in gross sales within the first quarter on account of a market weakened by a scarcity of purchasers investing in 5G expertise.
The Espoo, Finland-based firm reported a internet revenue of 501 million euros ($535 million) for the January-March interval, up 46% from 342 million euros a 12 months earlier. The determine was nonetheless decrease than analysts had anticipated.
One-off positive aspects from Nokia’s licensing enterprise contributed to the revenue.
Web earnings attributable to shareholders was 497 million euros, up from from 332 million euros a 12 months earlier. Nokia’s gross sales have been down 20% at 4.7 billion euros.
The continued weak point within the telecom tools market, the place operators are reducing again on investments into 5G and different expertise due to financial uncertainty and excessive financing prices, prevailed within the first quarter “as anticipated,” Nokia’s CEO Pekka Lundmark mentioned.
“Nevertheless, we now have seen continued enchancment so as consumption, that means we stay assured in a stronger second half and attaining our full-year outlook,” Lundmark mentioned in a press release.
Nokia is without doubt one of the world’s important suppliers of 5G, the newest technology of broadband expertise, together with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung. Earlier this week, Nordic rival Ericsson reported on related market difficulties, with a serious drop in gross sales within the first quarter.
“Whereas we’re acutely aware of the broader financial setting, contemplating the on-going order consumption power, we anticipate Community Infrastructure will return to internet gross sales development for full 12 months 2024 with a stronger second-half efficiency,” Lundmark mentioned, referring to the scenario at Nokia’s greatest enterprise unit by gross sales.
He mentioned the cell community unit, Nokia’s second greatest enterprise entity, was impacted by significantly low ranges of spending in 5G expertise in North America and India through the first quarter.