Wireless and fixed-network equipment maker Nokia reported a smaller-than-expected profit and a double-digit fall in sales in the first quarter of the year. The company's net profit for the January-March period was 501 million euros, up 46% from the previous year but still lower than analysts' expectations. This increase was partly due to one-off gains from Nokia's licensing business. Net income attributable to shareholders also saw a rise to 497 million euros.
Nokia's sales were down by 20% at 4.7 billion euros, reflecting the ongoing weakness in the telecom equipment market. The market has been affected by a lack of client investments in 5G technology, driven by economic uncertainty and high financing costs. The company's CEO, Pekka Lundmark, acknowledged the challenging market conditions but expressed confidence in a stronger second half of the year and meeting the full-year outlook.
