Finnish telecommunications giant Nokia reported a sharp 74 percent decline in its operating profit for the first quarter of 2025, reported Xinhua.
According to the company's interim report released on Thursday, Nokia's comparable operating profit dropped to 156 million euros in the January-March, down from 600 million euros in the same period last year. Net sales, however, saw a relatively modest decline of 1 percent, totaling 4.44 billion euros year-on-year.
The performance fell well short of market expectations. Analysts had anticipated an operating profit of nearly 300 million euros.
As a result, Nokia's shares tumbled around 8 percent on the Helsinki Stock Exchange by midday Thursday.
The company's comparable gross margin also deteriorated, falling to 41.5 percent from 49.7 percent a year earlier. Half of the margin decline was attributed to lower revenues in the Nokia Technologies division, while a 120-million-euro contract settlement charge in the Mobile Networks segment further impacted earnings, explained the company.
Despite these setbacks, Nokia's Network Infrastructure division, which handles fixed network operations, saw a positive development. The segment's operating profit surged nearly 59 percent, rising to 135 million euros from 85 million euros in the first quarter of 2024.
Nokia also flagged potential headwinds related to recent U.S. tariffs.
"Based on what we see today, we currently expect a 20 to 30-million-euro impact on our comparable operating profit in the second quarter from the current tariffs," said Justin Hotard, Nokia's President and Chief Executive Officer, in a press release issued Thursday.
Hotard emphasized that the company would leverage its global manufacturing network to mitigate the evolving impact of trade restrictions.
- Nokia
- Profit
- Drops
Source: www.dailyfinland.fi
