Interim reports|Based on forecasts, Nokia’s turnover has not increased in July–September.
Network devices the difficulties of the manufacturer Nokia have apparently not abated.
Based on the analysts’ average forecast, turnover in July–September was 4.7 billion euros, which is the same as a year ago. Analysts predict that the comparable operating profit will have increased by nine percent to 455 million euros.
Nokia will announce its interim report on Thursday at 8 o’clock.
If if the analysts’ predictions are correct, Nokia may have to change its estimate of the development of its profitability to a weaker one on Thursday. That would be an obvious setback.
This is because Nokia has repeatedly estimated this year that the turnover will start to increase during the fall. The company’s stock has strengthened by 28 percent this year.
Based on preliminary estimates, Nokia’s Swedish competitor Ericsson edged past Nokia in terms of profitability. In the previous two quarters, Nokia’s profitability was better than Ericsson’s.
Ericsson published a strong result on Tuesday, driven by significant business growth in North America.
In July–September, turnover shrank by four percent to 61.8 billion kroner, or 5.4 billion euros. Comparable operating profit, on the other hand, grew by 88 percent to 7.3 billion kroner, or 637 million euros.
Last fall Ericsson won In the United States, the telecommunications operator AT&T’s big deal, where Nokia was pushed aside from renewing the fifth generation mobile phone network.
CEO of Ericsson Börje Ekholm estimates in the interim report that the market is stabilizing, driven specifically by North America. The company’s turnover in North America grew by 55 percent.
Both the companies have suffered because telecom operators have postponed their investments. That’s why the mobile phone network market will shrink even this year.
Ericsson’s market share is clearly greater than Nokia’s in mobile phone networks. As a counterbalance, Nokia has strengthened its position in fixed networks, where orders have increased according to the company.