Nokia improves profitability despite sales decline amid COVID-19 – Times of Oman

Nokia improves profitability despite sales decline amid COVID-19 – Times of Oman

August 1, 2020 | 12:28 PM

by Xinhua

Helsinki: Finland-based network equipment manufacturer Nokia said on Friday it had improved its profitability in April-June 2020, though there was a drop in its second quarter (Q2) net sales.

According to the report published by Nokia on Friday, its net sales in Q2 2020 amounted to 5.1 billion euros (6.04 billion US dollars), down by 11 per cent year on year, while its operating profit in Q2 was 423 million euros, compared to 451 million euros of Q2 2019.

However, Nokia Networks sector has made an excellent performance in Q2 2020. Although net sales of Networks declined by 10 per cent year-on-year to 3.96 billion euros, its operating profit up by 109 per cent to 249 million euros.

Rajeev Suri, President and CEO of Nokia, said in the report that profitability gains in the quarter were supported by a 4.5 percentage point year-on-year improvement in Networks gross margin, building on a 3.5 percentage point gain in the first quarter, and driving Nokia non-IFRS gross margin to 39.6 per cent.

"Nokia Enterprise also grew year-on-year constant currency sales by 18 per cent compared to one year ago and expanded margins," he added.

Nokia delivered a strong improvement in Q2, with