Nokia shares jump after cull of low-margin business sees earnings beat

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Finnish telecom network equipment maker Nokia reported an unexpected rise in its second-quarter underlying profit on Friday, amid the COVID-19 ...

HELSINKI/STOCKHOLM: Finnish telecom network equipment maker Nokia reported an unexpected rise in second-quarter underlying profit on Friday as it took on less low-margin business particularly in China, sending its shares up 13per cent in early trade.

Nokia said its underlying earnings in April through June rose to 0.06 euros per share from 0.05 euros a year ago, beating the 0.03 euros consensus in a Refinitiv poll. Quarterly revenue fell 11per cent to 5.09 billion euros, below a consensus figure of 5.28 billion, Refinitiv Eikon data showed.Most of the drop was due to the effects on the economy of COVID-19, but Suri also cited a sharp decline in China based on a"prudent approach" in that market, and proactive steps to reduce low-margin services business, though he didn't say what the latter consisted of.

 

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