Nokia reported 2022Q1 results

Earlier today, Nokia reported 2022Q1 results. The company’s Q1 comparable operating profit rose to 583 million euros (US$613 million) from 551 million euros last year. Net sales grew 5% to 5.35 billion euros.

Telecom equipment maker Nokia reported stronger-than-expected quarterly results on Thursday, helped by demand for 5G gear despite supply chain constraints and higher prices of components.  European based Nokia has been heavily impacted by both the horrendous war in the Ukraine, and pulling out of Russia. (Will Huawei move to fill this gap?)

Nokia’s Pekka Lundmark, President and CEO said “Demand in our end markets remains high, and although supply chain constraints continue to impact our growth, we delivered 1% constant currency net sales growth in Q1. Our comparable operating margin was stable year[1]on-year at 10.9% as strong underlying improvements in profitability were offset by rising R&D investment, lower other operating income compared to the year before and some timing effects in Nokia Technologies.

Network Infrastructure delivered again strong growth with continued robust momentum in both Fixed and Submarine Networks. In Mobile Networks supply constraints hindered our revenue growth, nevertheless we expect to return to growth this year due to our improved competitiveness. Our 5G Core business continued to drive good growth in Cloud and Network Services.”

Perhaps the most encouraging element of the report is that Nokia’s Network Infrastructure grew 9% in constant currency, driven by strong demand in both Fixed and Submarine Networks.  There is light at the end of the tunnel!

At the time of writing of this article, Nokia shares in Helsinki were up 1%.

The actual Nokia earnings press release is here. For past articles on Nokia, see here.

TruePulse buys and sells central office telecommunication equipment of Nokia, including the numerous acquired Alcatel and Lucent platforms such as the Collins-Alcatel, Alcatel iMTN, Lucent DACS II and the Lucent Metropolis DMX.  Please ask us about products from any of the Nokia/Alcatel/Lucent family!