Nokia reports steep quarterly profit decline

Nokia’s first-quarter group earnings before interest and taxes fell 30 percent from a year ago to €239 million. (Reuters)
Updated 26 April 2018
0

Nokia reports steep quarterly profit decline

HELSINKI: Network equipment maker Nokia on Thursday posted weaker-than-expected quarterly profits as telecom operators, particularly in North America, held off spending, but it expressed confidence that momentum was building later in 2018.
The Finnish company, which competes with Sweden’s Ericsson, Huawei and ZTE, both of China, said the battered network industry was poised to bounce back as commercial deployments for next-generation 5G networks would start to take off later this year.
“We see strong momentum building for the full year despite a slow start in networks... We have clear visibility to 5G deals for large-scale commercial rollouts in United States in the second half of the year,” CEO Rajeev Suri said in a statement.
First-quarter group earnings before interest and taxes (EBIT) fell 30 percent from a year ago to €239 million, clearly below analysts’ average forecast of €369 million in a Reuters poll.
Most of the profit was generated by the company’s profitable patent licensing business, which grew 136 percent.
Nokia said it expected the global networks industry to fall 1-3 percent this year, a slight improvement from its previous forecast of a fall of 2-4 percent, and added its own sales would outperform the wider telecom equipment market.


Maalem Financing raises $26m in debut sukuk

Updated 17 October 2018
0

Maalem Financing raises $26m in debut sukuk

  • The sukuk from Maalem, a shariah-compliant commercial and consumer financing firm, is a small but novel deal
  • The three-year unsubordinated deal was sold through a private placement and Maalem could tap the market again

LONDON: Saudi Arabia’s Maalem Financing has raised SR100 million ($26.6 million) from a debut sale of Islamic bonds, or sukuk, as the firm seeks to develop a crowdfunding product and expand its operations, a senior executive said on Tuesday.
The sukuk from Maalem, a shariah-compliant commercial and consumer financing firm, is a small but novel deal in a market that is dominated by issuance from sovereign institutions and Islamic banks.
The three-year unsubordinated deal was sold through a private placement and Maalem could tap the market again as early as January next year, said John Sandwick, a member of Maalem’s board of directors.
“The program is for SR500 million and with 3.6 times oversubscription, there seems to be a lot of demand,” he said.
Additional sales of sukuk aimed to raise between SR100 million and SR200 million, depending on market conditions, he said, adding that Maalem may consider a dollar-denominated sukuk issuance at a later stage.
The debut transaction used a structure known as murabaha, a cost-plus-profit arrangement commonly used in Saudi Arabia. The firm hoped to use an asset-backed structure for future deals, Sandwick said.
Established in 2009, Maalem received regulatory approval to operate as a non-real estate finance company in 2016 and increased its capital in 2017 to SR150 million.
The company plans to open several regional offices by the end of 2018 and is awaiting regulatory approval for a crowdfunding license, Sandwick said.
Crowdfunding enables startup firms to collect small sums of money from many individuals as an alternative to bank loans.
Albilad Capital, the investment banking unit of Bank Albilad, served as sole lead manager and arranger of the sukuk.