Nokia, the mobile phone maker, has posted a 90% drop in first quarter profit, as the telecommunications industry continues to be hit by the global economic downturn.
Net profits fell to €122m (£108m) during the quarter, which is a marked decline from the €1.2bn (£1.06bn) it reported in the same period last year.
Sales also fell by 27% to €9.28bn (£8.2bn), compared to €12.7bn (£11.2bn) a year ago.
In March, Nokia announced plans to axe 1,700 jobs globally. Cuts are being made in sales, marketing and technology management areas.
Nokia chief executive Olli-Pekka Kallasvuo says: “In what has been an exceptionally tough environment, we continue to invest in a focused manner in consumer internet services delivered across our broad portfolio of mobile devices.”
The mobile phone maker is currently undertaking a review of its global media planning and buying business. MediaCom is currently the incumbent for Nokia’s European, Asian and US accounts.