FILE PHOTO: A Nokia logo is seen at the company’s headquarters in Espoo, Finland, May 5, 2017. REUTERS/Ints Kalnins
HELSINKI (Reuters) – Finnish telecom network equipment maker Nokia reported a surprise quarterly loss on Thursday, citing hard competition in its core business, the networks unit.
Having signaled back in January “a particularly weak Q1”, Nokia reported a fall to an operating loss (non-IFRS) of 59 million euros ($66 million) from a profit of 239 million euros in the first quarter a year ago.
That compared with analysts’ profit expectation of 305 million in a Reuters poll.
The networks industry – dominated by Nokia, Sweden’s Ericsson and China’s Huawei – has been battered by years of slowing demand since 4G network sales peaked in the middle of the decade.
It is now readying for a new cycle of network upgrades as operators have started to invest in 5G equipment.
Reporting by Anne Kauranen, Tarmo Virki in Helsinki; editing by Gopakumar Warrier