STOCKHOLM: Finnish telecom equipment maker Nokia reported on Thursday quarterly operating profit ahead of market expectations, boosted by strong demand for 5G gear from phone companies.

Second-quarter comparable operating profit rose to 714 million euros ($729.71 million) from 682 million last year, beating the 636.52 million euro mean forecast of 11 analysts polled by Refinitiv.

However, comparable operating margin fell to 12.2% from 12.8% due to timing effects of contract renewals and a one-off software deal last year.

Ericsson’s quarterly core profit misses estimates on rising costs

Network infrastructure grew 12% in constant currency in the quarter, driven by strong demand in both fixed and submarine networks.

Net sales grew 11% to 5.87 billion euros, beating estimates of 5.60 billion.

Last week, rival Ericsson’s quarterly core earnings missed expectations as margins were hit by higher component and logistics costs.

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