Telecom equipment maker Nokia has today reported a stronger than expected quarterly operating profit, helped by higher demand for 5G gear despite supply chain constraints.
The Finnish company has been gaining ground against rivals such as Sweden's Ericsson and China's Huawei after it made its products more competitive by investing heavily in research.
It also found ways to cut costs from other areas.
"Demand in our end-markets remains high, and although supply chain constraints continue to impact our growth, we delivered 1% constant currency net sales growth in Q1," chief executive Pekka Lundmark said in a statement.
Network infrastructure grew 9% in constant currency, driven by strong demand in both fixed and submarine networks.
The company's first-quarter comparable operating profit rose to €583m from €551m last year, beating the €513m mean forecast of 11 analysts polled by Refinitiv.
The company also affirmed its full-year net sales outlook of between €22.9 billion and €24.1 billion on constant currency basis.
Earlier in the month, Nokia announced a pullout from Russia that would lead to a provision of €100m, but retained its full-year outlook.
