Nokia reports higher Q3 profits despite an 8% sales decline, primarily due to a sluggish market in India

Nokia Reports Q3 Earnings Amid Sales Decline

HELSINKI --Wireless and fixed-network equipment manufacturer Nokia announced its third-quarter earnings, revealing a net profit of 358 million euros ($389 million), marking a 22% increase from 293 million euros ($318 million) a year earlier. This growth is largely attributed to effective cost-cutting measures.

However, the company experienced an 8% decline in sales, dropping to 4.3 billion euros ($4.7 billion) from 4.7 billion euros ($5.1 billion) in the same period last year. This downturn is predominantly influenced by a weakened market in India, with CEO Pekka Lundmark noting that three-quarters of the sales decline stems from this region, which had a notably strong performance in the previous year.

Similar to its Nordic competitor Ericsson, Nokia has faced challenges as telecommunications operators reduce investments in 5G technology amid economic uncertainty and rising financing costs. Lundmark expressed optimism about the company's direction, stating, “I am optimistic we are now turning the corner in many parts of our business, even if some continue to experience market weakness.”

The full-year sales recovery is proceeding slower than anticipated, although improvements in gross margin and proactive cost management are providing some mitigation. Nokia remains competitive in the 5G equipment market alongside major players such as Ericsson, Huawei, and Samsung.