Nokia shares slump in wake of 5G battle

Hanno Labuschagne

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Nokia shares slump in wake of 5G battle

Nokia Oyj shares suffered their biggest drop in decades after the Finnish company cut its outlook and suspended the dividend, saying spending to fend off competitors has delayed an earnings boost from 5G mobile networks.

The equipment maker lowered its profit expectations for this year and next and said it won’t distribute dividends for the third and fourth quarters of fiscal 2018. Nokia isn’t expecting a recovery for its earnings until 2021, about a year later than previously.

The stock fell as much as 25%, the most since at least 1991, when Bloomberg started collecting data. The outlook also dragged down shares of its Swedish rival Ericsson AB by as much as 4.1%.

[Bloomberg]
 
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