Nokia reported a slump in operating profit as the company revealed demand was weighed down by economic uncertainty.
The Finnish company saw comparable operating profit fall 18 per cent in the most recent quarter to €479m (£422m) from €583m (£514m) in the same period last year.
Net sales grew by 10 per cent to €5.86 billion (£5.17 billion), but comparable gross margins fell to 37.7 percent from 40.7 per cent.
“Looking forward, we are starting to see some signs of the economic environment impacting customer spending,” said Nokia’s chief executive, Pekka Lundmark, in a statement.
The company saw a slowdown in 5G sales in several markets, including North America.
Nokia also reported a “significant swing” in venture capital investment which hit operating margins.
Lundmark added: “Given the ongoing need to invest in 5G and fiber, we see this primarily as a question of timing; nevertheless we will maintain our cost discipline to ensure we can successfully navigate this uncertainty. We remain on track to deliver another year of growth in 2023 so our outlook is unchanged with the expectation that profitability in the second half of the year will be stronger than the first half.”
Comparable earnings per share fell from to six cents from seven cents in the same period last year.
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