Nokia profit up despite Covid-19 pandemic as new CEO takes over Nokia

Nokia has reported better than expected second-quarter earnings on the back of improved margins for telecoms equipment and software despite the coronavirus crisis causing a substantial drop in revenue.

The Espoo, Finland-based maker of new-generation 5G mobile and other networks said Friday that its net profit for the April-June period was up 22 per cent at 316 million euros (USD 376 million). Sales were down 11 per cent at 5.1 billion euros.

CEO Rajeev Suri said in a statement that the majority of the drop in revenue was “the result of COVID-19 as well as a sharp decline in China based on the prudent approach we have taken in that market.

Nokia estimated that the COVID-19 crisis hurt its net sales by about 300 million euros in the second quarter and about 500 million euros in the first half of the year.