Nokia Oyj headquarters in Espoo, Finland (Photo: Bloomberg)2 min read Last Updated : Jul 18 2024 | 4:29 PM IST Wireless and fixed-network equipment maker Nokia Thursday reported a double-digit fall in profit and sales in the second quarter due to a continuing weak market as clients are holding off investments in 5G technology. The Espoo, Finland-based company reported a net profit of 328 million euros ($ 359 million) for the April-June period, down 20 per cent from 409 million euros ($ 447 million) a year earlier.

Net income attributable to shareholders was 325 million euros ($ 355 million), down from 410 million euros a year earlier. Similarly to its Nordic rival Ericsson of Sweden, Nokia has suffered in the past year from operators cutting back on investments into 5G and other telecom technology because of economic uncertainty and high financing costs. Our financial performance in the second quarter continued to be impacted by the ongoing market weakness with net sales declining 18 per cent year-on-year in constant currency, Nokia CEO Pekka Lundmark said in a statement.

Nokia's sales were down 18 per cent at 4.5 billion euros ($ 4.9 billion) compared with 5.4 billion euros ($ 5.9 billion) a year earlier. The Finnish company is one of the world's main suppliers of 5G, the latest generation of broadband technology along with Ericsson, China's Huawei and South Korea's Samsung.

Lundmark said that the company's sales would improve in the second half of this year, particularly in its network infrastructure business unit. Looking forward, we believe the industry is stabilizing and given the order intake seen in recent quarters we expect a significant acceleration in net sales growth in the second half, he said. However, in Nokia's mobile network unit, the biggest business entity during the quarter by sales, the market dynamic remains challenging as operators continue to be cautious of spending in 5G technology and equipment, Lundmark said.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First Published: Jul 18 2024 | 4:29 PMIST