July 27, 2017
HELSINKI (Reuters) – Finnish network equipment maker Nokia reported larger than expected quarterly profits on Thursday thanks to a patent deal with Apple along with improving profitability at its network business but warned its key market would slow.
Second-quarter group earnings before interest and taxes (EBIT) rose 73 percent from a year ago to 574 million euros ($674 million), clearly above analysts’ average forecast of 447 million euros in a Reuters poll.
However, Nokia said the global network market would be more challenging in the full year than earlier forecast, citing uncertainty related to the some projects.
“We now expect a decline in the market in the range of 3-5 percent, versus our earlier view of a low-single digit decline,” Chief Executive Rajeev Suri said in a statement. Nokia’s network business, which accounts for roughly 90 percent of its sales, is expected to decline in line with the market trends, he said.
(Reporting by Jussi Rosendahl and Helena Soderpalm, Editing by Eric Auchard)