Wireless network maker and 5G technology provider Nokia reported substantially improved second-quarter profit Thursday, citing the help of its new operating model and booming sales of 5G equipment.
Follow Israel Hayom on Facebook and Twitter
The company, based in Espoo, Finland, reported net profit of 539 million euros ($640 million) for the April-June period, up 71% from 316 million euros a year earlier. Sales were up 4% at 5.3 billion euros.
CEO Pekka Lundmark, who took over Nokia's top job a year ago and has drastically changed the business strategy, said the second-quarter results showed the company was on the right track.
The executive has vowed to make Nokia the world leader in 5G - the new generation of broadband technology - even if it means sacrificing short-term profitability.
In 5G technology, Nokia is in a tight race with Nordic competitor Ericsson, China's Huawei and South Korea's Samsung, among others.
Lundmark said Nokia has revised its full-year profit outlook upwards and "we now expect comparable operating margin between 10 and 12% for full year 2021, compared to our previous range of 7-10%."
