Nokia Reports 55 Million Euro Loss In Q1, 2019
By MYBRANDBOOK
Finnish telecom gear maker Nokia reported a significant loss in its Q1 financial results. The firm reported loss 55 million Euro in Q1, 2019 as against 239 million Euro profit for the same period a year ago. The company reported 5 billion Euro in revenue for Q1 as against 4.9 billion Euro for the same period a year back.
And this is not the only bad news. The company, looking at the current market dynamics, yet-to-be-matured 5G ecosystem, expects the next quarter as well as the full year 201 to be 'flattish'.
"The slow start to 2019 and expected weak overall first half puts significant pressure on execution in the second half," the company said in a statement.
Nokia also attributed its Q1 loss to the 200 million Euro it could not recognise related to 5G deliveries mainly in North America, which it expects to recognize in full before the end of 2019. It said it could not pocket that money as the 5G ecosystem is still evolving.
The company suffered the maximum loss in its strongest business unit - networks, where it suffered a loss of 254 million Euro in this quarter as against 46 million Euro profit a year back.
This is in sharp contrast with the financial performance of its two closest rivals - Swedish Ericsson and Chinese Huawei.
Ericsson eported a net sales of 48.9 billion SEK in Q1, 2019 as against 43.4 billion SEK for the same period a year ago, showing a growth of 13%.
The firm’s operating profit for the quarter, however, beat the industry estimates and the company made 4.9 billion SEK as against a loss of 300 million in for the same period a year ago.
While Nokia claims it had bagged 36 commercial 5G contracts so far, Ericsson has announced commercial 5G deals with 18 global operators, which the firm claims to be more than any other vendor.
Nokia's Q1 results have confused the industry watchers. While the industry thought Nokia might gain from the fact that Huawei, one of the fiercest rivals to these two European vendors, is being seen as suspicious telecom equipment maker and many markets including the U.S has somewhat blacklisted it from deploying 5G networks for its operators.
Nokia, too, echoed similar sentiment but with a cautious outlook.
"Competitive intensity has slightly increased in certain accounts as some competitors seek to be more commercially aggressive in the early stages of 5G and as some customers reassess their vendors in light of security concerns, creating near-term pressure but longer-term opportunity,' it said.
BREAKING NEWS
TECHNO TRENDS
Nazara and ONDC set to transform in-game monetization with ‘
Nazara Technologies has teamed up with the Open Network for Digital Comme...
Jio Platforms and NICSI to offer cloud services to government
In a collaborative initiative, the National Informatics Centre Services In...
BSNL awards ₹5,000 Cr Project to RVNL-Led Consortium
A syndicate led by Rail Vikas Nigam Limited (abbreviated as RVNL), along wi...
Pinterest tracks users without consent, alleges complaint
A recent complaint alleges that Pinterest, the popular image-sharing platf...
E-Magazine
TECHNOTAINMENT
Netflix adds 'Moments' feature for saving, sharing scenes from
Netflix has introduced a new “Moments” feature on its mobile app, whic
Jacqueline Fernandez come together with YouTuber Mr. Beast for
Jacqueline Fernandez has partnered with American YouTuber Mr. Beast to b
MOVERS & SHAKERS
Visa elevates Rishi Chhabra as new Country Manager for India
Rishi holds a Master’s in Industrial Engineering from The Ohio State Univ
Genesys welcomes Albert Nel as Senior VP and Regional Sales Le
Genesys continues to deepen its investment in the APAC region. Earlier this
OPEN YOUR EYES
INTERVIEWS
Delivering Critical Business Communication Solutions to Enterp
Arya Omnitalk and Syntel’s comprehensive suite of solutions and more than
Alcatel-Lucent Enterprise Carrying a 100 year legacy ahead
A good amount of R&D works and global support services are operated out of
HOT PICK
SonicWall Launches TZ80: A Powerful Solution for Remote Office
SonicWall announced today the launch of the TZ80, a groundbreaking securit
Gigabyte X3D Turbo: A Gaming Revolution
GIGABYTE X3D Turbo Mode is a cutting-edge feature that unifies cores distr
MAKE IN INDIA BRANDS
DATA SAFEGUARD INDIA PRIVATE LIMITED
STERLITE TECHNOLOGIES LTD.
TATA CONSULTANCY SERVICES
DIGISOL SYSTEMS LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
ICONS OF INDIA : S KRISHNAN
S Krishnan as the secretary for the electronics and information techno...
Icons Of India : PRATIVA MOHAPATRA
Prativa is a transformational leader with an incredible breadth of exp...
Icons Of India : MADHABI PURI BUCH
Madhabi Puri Buch is the first-female chairperson of India’s markets...
PARTNER SPEAKERS
PSU
BSE - Bombay Stock Exchange
The Bombay Stock Exchange (BSE) is one of India’s largest and oldest...
GSTN - Goods and Services Tax Network
GSTN provides shared IT infrastructure and service to both central and...
IREDA - Indian Renewable Energy Development Agency Limited
IREDA is a specialized financial institution in India that facilitates...
VIDEOS
Top 25 Brands
Global Indian industry
Indian Tech Talent Excelling The Tech World - Aman Bhutani, CEO, GoDaddy
Aman Bhutani, the self-taught techie and CEO of GoDaddy, oversees a co...
Indian Tech Talent Excelling The Tech World - NIKESH ARORA, Chairman CEO - Palo Alto Networks
Nikesh Arora, the Chairman and CEO of Palo Alto Networks, is steering ...
Indian Tech Talent Excelling The Tech World - PADMASREE WARRIOR, Founder, President & CEO - Fable
Padmasree Warrior, the Founder, President, and CEO of Fable, is revolu...
STARNITE AWARDS 2024
ITFORUM 2024
CMO of the Year
WOMEN LEADERSHIP
IMAGE GALLERY
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
