Nokia Defies Challenges: Cost-Cutting Boosts Q3 Earnings Amid Sales Slump

Nokia reported a 22% increase in third-quarter net profit, despite suffering an 8% drop in sales primarily due to a weaker market in India. The Finnish telecom giant's earnings were boosted by effective cost-cutting measures, while still facing intense competition and economic uncertainties impacting the 5G market.

Nokia, the renowned wireless and fixed-network equipment maker, announced better-than-expected earnings for the third quarter, attributing much of its financial success to rigorous cost-cutting strategies. Despite these gains, the company experienced an 8% decline in sales, chiefly influenced by a weaker performance in the Indian market.

The Espoo, Finland-based company posted a net profit of 358 million euros for the July-September quarter, marking a 22% increase from the 293 million euros reported in the same period last year. Net income attributable to shareholders rose to 352 million euros, up from 299 million euros a year earlier.

Though similar to its Nordic competitor Ericsson, Nokia has faced challenges over the past two years as telecom operators reduce investments in 5G due to economic uncertainties and high financing costs. CEO Pekka Lundmark expressed cautious optimism about the company turning a corner in many areas, despite ongoing market difficulties. Lundmark highlighted the ongoing strategy of maintaining disciplined pricing while still securing deals to enhance profitability, even amid a slower-than-anticipated sales recovery for the full year 2024.

(With inputs from agencies.)