Nokia’s quarterly operating profit beats forecasts on 5G demand

Finnish telecom equipment maker Nokia reported quarterly operating profit ahead of market expectations, boosted by strong demand for 5G gear from phone companies.

Second-quarter comparable operating profit rose to 714 million euros ($729.71 million) from 682 million last year, beating the 636.52 million euro mean forecast of 11 analysts polled by Refinitiv.

However, comparable operating margin fell to 12.2% from 12.8% due to timing effects of contract renewals and a one-off software deal last year.

Network infrastructure grew 12% in constant currency in the quarter, driven by strong demand in both fixed and submarine networks.

Net sales grew 11% to 5.87 billion euros, beating estimates of 5.60 billion.

Last week, rival Ericsson’s quarterly core earnings missed expectations as margins were hit by higher component and logistics costs.