Nokia revenue jumps 10% to €5.85 bn in first quarter

Nokia has reported revenue of €5.859 billion (+10 percent) during the first quarter of 2023 thanks to 14 percent growth in Network Infrastructure sales and 13 percent rise in Mobile Networks sales.
Nokia new logo 2023Nokia CEO Pekka Lundmark said: “We are starting to see some signs of the economic environment impacting customer spending. Given the ongoing need to invest in 5G and fiber, we see this primarily as a question of timing.”

“We will maintain our cost discipline to ensure we can navigate this uncertainty. We remain on track to deliver another year of growth in 2023 so our outlook is unchanged with the expectation that profitability in the second half of the year will be stronger than the first half.”

For comparson, Ericsson CEO has shared a gloomy outlook for the company in coming quarters.

Ericsson reported first quarter revenue of SEK 62.6 billion.

Ericsson CEO Borje Ekholm earlier said: “We continue to see a choppy environment during 2023 with poor visibility. In Q2, we expect operators to remain cautious with Capex investments and continue to adjust inventories.”

Nokia has generated first quarter revenue of €2,248 million (+14 percent) from Network Infrastructure business, €2,567 million (+13 percent) from Mobile Networks, €760 million (+3 percent) from Cloud and Network Services and €242 million (–21 percent) from Nokia Technologies.

Nokia has generated quarterly revenue of €781 million from IP Networks, €533 million from Optical Networks, €650 million from Fixed Networks and €285 million from Submarine Networks.

Nokia has lost business in North America, Asia Pacific, China and Middle East and Africa during the first quarter.

Nokia has generated revenue of €578 million (–9 percent) from Asia Pacific, €1,473 million (+5 percent) from Europe, €336 million (–14 percent) from Greater China, €853 million (+327 percent) from India, €232 million (+3 percent) from Latin America, €436 million (+7 percent) from Middle East & Africa, €1,666 million (–9 percent) from North America and €285 million (+9 percent) from Submarine Networks business.

Nokia said its mobile networks revenue was driven by the ramp-up in 5G deployments in India which grew substantially. Nokia’s Mobile Networks also grew in Europe to gain market share amidst a largely stable spending environment, as well as in Middle East & Africa.

North America declined as customer spending returned to a more normal pattern in 2023 (compared to first-half weighted spending seen in 2022), combined with customer inventory depletion in the quarter. Nokia’s sales declined in Asia Pacific and in Greater China due to the phasing of 5G deployments.