Helsinki (AFP) – Finnish telecommunications equipment maker Nokia said that demand for its AI and cloud services drove sales higher in the second quarter, but restructuring charges ate into earnings.
The second quarter “demonstrates our strategy is delivering results,” chief executive Justin Hotard said in a statement. “Since we set out our plan late last year, Team Nokia has focused on maximising our opportunity in the AI supercycle. I am encouraged by the execution and progress we have made in a short period of time. We enter the second half with momentum,” he said.
Nokia booked profit of 5.0 million euros ($5.7 million) for the period from April to June, down from 96 million euros a year earlier. Second-quarter sales, on the other hand, rose by eight percent to 4.8 billion euros. The group attributed the sharp drop in earnings to restructuring charges which are projected to amount to 800 million euros for the full year.
Underlying or operating profit — which strip out one-off factors — rose by 18 percent to 434 million euros. “In the second quarter, our AI and cloud order intake was 2.8 billion euros while sales more than doubled year-on-year,” said CEO Hotard. “The strength was broad-based. We expect around half of these orders to convert to revenue over the next 12 months,” he continued.
© 2024 AFP
