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5G pressures drive Nokia to slash profit forecast and suspend dividends

While Ericsson and Huawei reported solid quarterly results (see Wireless Watch October 23 2019), Nokia lost €6bn ($6.7bn) of its market value when it slashed its profit outlook and suspended its dividend, blaming the impact of 5G costs on its margin. In the third quarter, Nokia actually reported sales growth – up 4% year-on-year, or 1% at constant currency, to €5.7bn. The firm said it expected a good revenue performance in the current Q4, but said it was lowering its outlook for full year 2019 and also for full year 2020 because of “margin pressure and additional investment needs”. It has suspended dividend payments to help meet the increased investment demands for 5G and to strengthen its battered cash position.…

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