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Indian market is the star once again!
Pekka Lundmark, CEO, Nokia credited India 5G sales and growth in European market share for offsetting a softening in North America at its mobile networks unit in Q1, though noted signs economic issues were impacting customer spend more widely.
In a statement accompanying its Q1 results, he said India’s 5G deployments helped deliver a 13 per cent year-on-year increase in net sales within its mobile networks business, which reached €2.6 billion.
Although overall sales were up, operating profit for the segment was down as margins dropped. The North American market had seen “anticipated softening. As we expected, we are seeing greater seasonality between the first and second half of the year in terms of profitability for mobile networks,” commented Lundmark.
Outside mobile networks, the vendor reported a drop in revenue from Nokia Technologies, which includes its IP business, and a negative impact from venture fund investments. Revenue across the company was €5.9 billion, up 10 per cent, with net profit €342 million, down 18 per cent on Q1 2022.
With its outlook unchanged and an expectation of stronger profitability in H2 compared to the first part of the year, “the company is on track to deliver another year of growth in 2023,” assured the CEO.
Yesterday, Ericsson while declaring its Q1 results had said, “India is strong where our sales are up five times. For us, India now is the second-largest market, after the US,” said CFO Carl Mellander.
CT Bureau
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