Nokia Posts Quarterly Profit Miss, Flags Disruption from Trump's Tariffs

A view shows Nokia headquarters in Espoo, Finland, October 19, 2023. JUSSI NUKARI/Lehtikuva/via REUTERS/File photo
A view shows Nokia headquarters in Espoo, Finland, October 19, 2023. JUSSI NUKARI/Lehtikuva/via REUTERS/File photo
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Nokia Posts Quarterly Profit Miss, Flags Disruption from Trump's Tariffs

A view shows Nokia headquarters in Espoo, Finland, October 19, 2023. JUSSI NUKARI/Lehtikuva/via REUTERS/File photo
A view shows Nokia headquarters in Espoo, Finland, October 19, 2023. JUSSI NUKARI/Lehtikuva/via REUTERS/File photo

Nokia reported first-quarter profit well below market expectations on Thursday and flagged a short-term disruption from US tariffs with an estimated impact of between 20 million and 30 million euros to its second-quarter profit.

Comparable operating profit fell to 156 million euros ($176.9 million) in the first quarter of 2025, a 36% miss against the average forecast of 243.83 million euros by analysts surveyed by LSEG.

A one-time charge in its mobile networks division had an impact of 120 million euros on quarterly margins, the company said.

Nokia's sales in North America have been growing steadily despite losing market share to Nordic rival Ericsson, reflecting a renewed market strength after years of weakness, Reuters reported.

But now the sweeping tariffs imposed by US President Donald Trump could counter this trend, as companies might pause orders fearing price increases.

The Finland-based company also announced a strategic multi-year extension of its partnership with T-Mobile in the US to expand the carrier's 5G network coverage.

"Telecommunications is not a place where customers tend to change their expenditures," Nokia's CEO Justin Hotard told reporters.

Its quarterly net sales totalled 4.39 billion euros, down 3% on a constant-currency basis compared to a year earlier and a notch lower than the 4.41 billion euros expected by analysts.

Nokia confirmed its outlook for the rest of the year, which now includes the acquisition of Infinera, but said achieving the top-end of the range for operating profit would be more challenging than initially expected.



Morocco Bets on Video Game Industry to Provide Jobs and Diversify Economy

 Moroccan Minister of Youth, Culture and Communication Mehdi Ben Said speaks during the Morocco Gaming Expo in Rabat, Morocco, Wednesday July 2, 2025. (AP)
Moroccan Minister of Youth, Culture and Communication Mehdi Ben Said speaks during the Morocco Gaming Expo in Rabat, Morocco, Wednesday July 2, 2025. (AP)
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Morocco Bets on Video Game Industry to Provide Jobs and Diversify Economy

 Moroccan Minister of Youth, Culture and Communication Mehdi Ben Said speaks during the Morocco Gaming Expo in Rabat, Morocco, Wednesday July 2, 2025. (AP)
Moroccan Minister of Youth, Culture and Communication Mehdi Ben Said speaks during the Morocco Gaming Expo in Rabat, Morocco, Wednesday July 2, 2025. (AP)

Morocco is laying down foundations to build a homegrown gaming industry by establishing a developer hub in the capital, training coders and launching programs to draw tech-savvy youth into the sector.

State officials invited developers, students and tech companies from around the world to a gaming expo in Rabat this week, where guests tested new games, competed in e-sports tournaments and heard about new initiatives to bring the burgeoning industry to Morocco.

Attendees at the Morocco Gaming Expo battled through shooting games, explored immersive virtual reality worlds, tested educational platforms and mingled with mobile providers eager to stake their claim in the growing mobile gaming market.

The event, in its second year, is one of the few ways in which African countries are diversifying their economies and attracting new industries for their young workforces.

Morocco is positioning itself as one of Africa's first countries to roll out targeted strategies for the gaming industry. Mehdi Ben Said, Morocco's Minister of Youth, Culture and Communication, said the government aims to both attract international game companies to Morocco and incentivize Moroccan developers to create their own products.

With youth unemployment close to 30% and many young people eyeing opportunities abroad, the gaming industry could be a way to spark job growth and diversify opportunities, he said.

“The objective is not only to generate revenue, but also to empower youth,” Ben Said said. “We must offer real alternatives to our young people by opening up new career opportunities.”

With more than $200 billion in annual revenue and 3 billion players, the global market for video games is undergoing rapid growth. But even as smartphones have become ubiquitous in the Middle East and Africa, the industry has remained concentrated in East Asia, North America and Western Europe.

Driven primarily by game sales, Morocco’s industry currently generates over $500 million annually, according to state officials, who aim to double this revenue by 2030.

Morocco is launching training programs in game design, programming and virtual reality alongside an industrial park where startups can incubate new games. The initiative includes a $26-million investment to open “Rabat Gaming City,” featuring training, co-working spaces and full-scale production studios.

For students the industry offers a chance to turn a passion into a career, said Fadwa Bezzazi, coordinator of Universite Mohammed V's undergraduate club in computer science and virtual reality.

Students, who are already spending money on mobile or PC games, want to find ways to put what they're learning in the classroom into practice.

“I'm not going to say we're preparing them for the future, because that future is already here,” she said.