Nokia has reported better-than-expected second-quarter earnings on the back of improved margins for telecoms equipment and software despite the coronavirus crisis causing a substantial drop in revenue.
The Finland-based maker of new-generation 5G mobile and other networks said on Friday its net profit for the April-June period was up 22 per cent at 316 million euros ($A522 million).
Sales were down 11 per cent at 5.1 billion euros.
Chief executive Rajeev Suri said the majority of the drop in revenue was “the result of COVID-19 as well as a sharp decline in China based on the prudent approach we have taken in that market”.
Nokia estimated the COVID-19 crisis hurt its net sales by about 300 million euros in the second quarter and about 500 million euros in the first half of the year.
Suri said Nokia had now concluded 85 commercial deals for 5G, the new network technology that allows ultra-fast downloading speeds among other things.
Along with China’s Huawei and Sweden’s Ericsson, Nokia is one of the three main providers of 5G networks.
Huawei is at the centre of a US-China dispute over technology, with the Trump administration saying it can help the Chinese government spy on people, a claim the company denies.
Friday marked the last day as a chief executive for Suri, a Nokia veteran with 25 years in service and the head of the company since 2014, as his appointed successor Pekka Lundmark takes over on August 1.