Nokia quarterly profit, revenue beat as CEO Lundmark revamps strategy

Revenue fell 5 per cent to €6.57 billion between October and December

Photograph: Markku Ojala/EPA

Photograph: Markku Ojala/EPA

 

Finnish telecom network equipment maker Nokia reported better-than-expected fourth-quarter revenue and underlying profits on Thursday, buoyed by strategy revamp by new chief executive Pekka Lundmark.

Nokia said its October-December revenue fell 5 per cent to €6.57 billion, beating a consensus figure of €6.42 billion, Refinitiv Eikon data showed.

Nokia said its October-December underlying earnings fell to €0.14 per share from €0.15 a year ago, beating the €0.11 consensus.

Nokia forecast 2021 revenues to fall to between €20.6 billion and €21.8 billion, from €21.9 billion in 2020, adding that underlying operating profit margin would be 7 per cent-10 per cent. It reached a 9.7 per cent profit margin last year.

Lundmark took over Nokia’s top job in August after product missteps by the company saw it lag Swedish rival Ericsson and Chinese group Huawei in the race to win deals to sell 5G network equipment.

Nokia shares have seen wild swings over the last two weeks as the stock has been targeted by the retail trading frenzy, alongside Gamestop and other tech companies. – Reuters