Shares of Nokia Corp today surged 13% higher after the mobile network equipment manufacturer reported that its Q2 profits rose 22% to €316 million ($376 million). The company’s revenues dipped 11% to €5 billion due to the coronavirus pandemic as customers scaled back their purchases.
Despite the lower revenues, the company managed to remain profitable by scaling back its service division and inking fewer 5G deals within the very competitive Greater China region during the last quarter.
Nokia’s President and CEO, Rajeev Suri said that the decline in the company’s revenues was “the result of Covid-19 as well as a sharp decline in China based on the prudent approach we have taken in that market.”
Nokia’s incoming CEO Pekka Lundmark is set to take over the company’s leadership this weekend as Rajeev Suri steps down.
Nokia share price
The company’s profitability soared after it reduced the volume of its low-margin business services.
The Finnish company raised its FY 2020 earnings outlook saying that it expects to recoup most of the lost revenues in the near future as businesses reopen.