Nokia slashes profit outlook in fight for 5G business

HELSINKI: Finland’s Nokia slashed its 2019 and 2020 profit outlook on Thursday, saying profits would come under pressure as the company spends more to fend off rivals in the fast-growing 5G networks business.

The telecom network equipment maker, which met third-quarter profit expectations, also said it would pause dividend payments to raise investments in 5G and only resume them when its cash position improves to around 2 billion euros.

“Competitive intensity has increased in some accounts as some competitors seek to take share in the early stage of 5G,” it said in a statement.