Nokia Gets on 5G Growth Path, New Sales Strategy Takes Shape

Finnish telecom network equipment maker Nokia demonstrated on Thursday how its new strategy fuels growth in 5G and network equipment sales, helped boost first-quarter revenue and earnings, and its share price jumped by 14%. Nokia and its Swedish rival Ericsson have been reaping more revenue. As telecom operators begin to roll out 5G networks, Chinese customers are also subject to more and more government security restrictions. 

Nokia

“This year, we see a huge demand for 5G and what we call network infrastructure (basically fiber optic connections). CEO Pekka Lundmark said in an interview. After taking over the top position last year, Lundmark simplified Nokia’s operations. , layoffs, and made changes to recoup losses caused by product failures due to the injury of the company’s previous management. 

Lundmark said: “We expect our typical quarterly earnings season to be less obvious in 2021.” Driven by the pandemic, the business has expanded throughout the year, alleviating seasonal factors, which led to excessive growth in the fourth quarter. Revenue in the fourth quarter increased 3% to 5,080 million euros (approximately 9,000 million euros). Refinitiv’s IBES data shows the figure to be 456 billion rupees, beating the market consensus figure of 4.72 billion euros (approximately 42.370 billion rupees). CCS Insight analysts. positive effects. 

“Sales of Nokia’s network infrastructure business (including optical network and fixed network products) increased by 28% to 1.73 billion euros (approximately 7.2 billion rupees). With the help of demand from corporate clients, increased by 15.53 billion rupees in the quarter. 

Earnings increased to 5 euro cents per share (approximately 5 rupees), and adjusted profit was 7 euro cents per share ( approximately 6 rupees.) Analysts previously expected 1 euro cent (approximately 1), comparable gross margin The 36.4% increase in the same period last year to 38.2% was mainly driven by 5G growth; Nokia maintained its net sales forecast for the full year at 20.6 billion euros (about 300 million euros).

In the same period last year, Ellison (Ericsson’s quarterly core earnings were higher than market expectations, thanks to higher profit margins and the launch of 5G. Its sales amounted to Rs 1,849.4 crore, reaching 21.8 billion euros (approximately Rs 19,571 crore), basically in line with expectations.

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