Nokia 4th Quarter Profit Higher

last updated on

Nokia 4th Quarter Profit Higher

Nokia's 4th Quarter Profit Higher Than Expectations

Nokia (HE: NOKIA) has finally posted its profit numbers for the 4th quarter. As per the results, the company has earned more revenue than initially forecasted by the market players. This comes as a surprise as Nokia's 5G equipment sales were weak as the company tried to keep costs under check.

According to Nokia, they expect a strong recovery of the demand during the 2H 2024. Despite this optimistic wish, the ground reality is that 2024 is going to be a tough one for companies like Ericsson & Nokia.

Disappointing Sales Of 5g Equipment

Experts believe that mobile operators around the world will be spending less money on 5G equipment during 2024. As a result, the bottom line of Nokia & other similar companies will be impacted negatively.

In the USA, Verizon also appears to be cutting back on costs as it only spent around $18.8 billion last year. In 2022, Verizon's capital expenditure was nearly $23.1 billion, which shows a consistent bearish trend.

For 2024, Verizon (telecom operator) is expected to spend only around $17 - $17.5 billion, which will be lower than 2023's numbers.

Although Nokia posted good profits during the 4th quarter, its comparable sales took a hit by almost 23%. The final reading for comparable sales was 5.71 billion Euros, a lot lower than the 6.28 Euros initially forecasted.

The company CEO is still optimistic though, for the year 2024! They added that the challenges faced by Nokia during 2023 will likely repeat during 1H 2024.

Nokia believes that its sales from the network infrastructure sector will grow during the 2nd half of 2024. In addition, the company's efforts to cut costs will also improve profit margins.

In October 2023, Nokia announced a plan that involved cutting around 14,000 jobs. Furthermore, the company has also signed a deal with Oppo, which is a good thing.

In 2024, Nokia is expected to have an operating profit of around 2.3 - 2.9 billion (EURO) while the market is citing a number of around 2.38 billion (EURO).

Trending Stories