Company: NOKBF
Filing Date: 2025-04-24
Form Type: 6-K
Source: 0001104659-25-038218
Chunk: 2

Company: NOKIA CORP
Filing Date: 2025-04-24
Form: 6-K
Chunk 2
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 year comparison in Nokia Technologies and a one-time charge in Mobile Networks, while profitability
improved in both Network Infrastructure and Cloud and Network Services.

Network Infrastructure net sales grew 11% with all units contributing
to growth and its backlog increased. The highlight of the first quarter was the completion of the Infinera acquisition. Our expanded Optical
Networks business had a strong first quarter with 15% net sales growth along with several important design wins, particularly with hyperscalers.
We have initiated the integration of Infinera and made many important roadmap decisions which we communicated to customers in early April.
We are on track to deliver our synergy targets and I believe this acquisition has significant value creation potential for Nokia.

In Mobile Networks we continue to see positive signs of stabilization
with further wins in addition to those we discussed last quarter. Today we have announced an important contract extension with T-Mobile
US. Regarding our financial performance, net sales grew 2% but profitability was impacted by an unexpected one-time contract settlement
with a net impact of EUR 120 million. The settlement related to a project for a single customer that started shipping in 2019 and the
settlement fully resolves the situation.

Cloud and Network Services delivered net sales growth of 8% and we
continue to see strong demand in the market for our 5G Core offers with additional footprint won at AT&T, Boost Mobile, Ooredoo Qatar
and Telefónica. Nokia Technologies continued its execution with further deals signed in the quarter that increased the contracted
annual net sales run-rate to approximately EUR 1.4 billion.

Looking forward, we are not immune to the rapidly evolving global trade
landscape however based on early customer feedback, I believe our markets should prove to be relatively resilient. In 2025, we continue
to expect strong net sales growth in Network Infrastructure, growth in Cloud and Network Services and largely stable net sales for Mobile
Networks. In Nokia Technologies we expect approximately EUR 1.1 billion of operating profit.

Regarding the tariff situation, there could be some short-term disruption.
We will continue to utilize the flexibility of our global manufacturing network to minimize impact of the evolving tariff landscape. Based
on what we see today, we currently expect a EUR 20 to 30 million impact to our comparable operating profit in the second quarter from
the current tariffs. Given the lack of visibility, we have not taken an assumption related to tariffs in the second half of 2025.

In terms of our outlook for the financial year 2025