Nokia’s Q4 earnings beat expectations on strong demand

Fixed and wireless network equipment maker Nokia on Thursday reported positive fourth-quarter results thanks to strong demand for 5G technology and an improved product portfolio.

The Espoo, Finland-based company reported a net profit of 929 million euros ($1 billion) for the October-December period, up 27% from 731 million euros a year earlier.

Net income attributable to shareholders was 931 million euros, up from 727 million euros the previous year.

Nokia’s revenue rose 16% to 7.4 billion euros. The company’s performance for the quarter exceeded analyst expectations.

CEO Pekka Lundmark said in a statement that the highlight of the fourth quarter was the “excellent” performance of the company’s network infrastructure business unit, which recorded 14%. increase the revenue “with significant operating margin expansion.”

Lundmark said he expects 2023 to be “another year of growth” for Nokia, although he noted that “we are mindful of an uncertain economic outlook”.

For the full year of 2022, Nokia recorded sales of 24.9 billion euros, up 12% year-on-year, with net profit was 2.5 billion euros, an increase of 18% over the same period last year.

“At the beginning of 2022, we said it was going to be an accelerated year and we delivered on what we promised,” Lundmark said. “The Nokia team did a great job navigating geopolitical, economic and supply challenges, successfully executing on our strategy, and delivering strong year-round performance.”

Nokia is one of the world’s main suppliers of 5G, the latest generation of broadband technology, along with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung.

Earlier this week, Nokia said it had signed a multi-year patent agreement with Samsung that allows the South Korean company to use Nokia’s technology in its products in exchange for royalties.

Lundmark told reporters on Thursday that Nokia is almost done leaving the Russian market, a move announced following Russia’s February 2022 invasion of Ukraine.

The Finnish company denounced Moscow’s actions and said it would move its research and development activities out of Russia, where it employs several thousand people. Nokia said it will also stop selling its devices and software in the country.

“We are currently in the final stages of implementing the withdrawal program announced last April,” Lundmark said. “Once our exit has taken place, we will not deliver anything there.”

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