FILE - In this file photo dated Wednesday, May 30, 2018, Nokia's Chairman Risto Siilasmaa speaks during a shareholder's meeting in Helsinki, Finland. Finnish tech company Nokia warned Thursday Oct. 24, 2019, that its profits will be lower than expected siting tough competition and costs related to new-generation 5G networks. (Antii Aimo-Koivisto/Lehtikuva FILE via AP)
INTERNATIONAL - The stock price of Finland-based technology conglomerate, Nokia, plunged on Thursday following the release of the company's Q3 report.

Nokia exceeded analyst expectations in its Q3 profits, but predicted lower profits of this full year and next. The profit in July-September amounted to 478 million euros ($532 million), when analysts had predicted 432 euros. A year earlier the amount was 487 million.

Nokia lowered its full year 2019 and full year 2020 outlook due to margin pressure and additional investment need. The 2019 profit is to be 8.5 percent, while the expectations earlier were 9-12 percents.

For 2020 the expectations are 9.5 percents. Nokia will suspend its dividend payments for the remainder of this year, in an effort to increase investments in 5G and strategic focus areas and to strengthen cash position.

In its Q3 report Nokia said that the 5G momentum continues, and 48 deals and 15 live networks had been launched. At the Helsinki stock exchange, Nokia shares nosedived 22 percent soon after the opening at 07:00 GMT.

Business daily Kauppalehti reported that in a short time the market value of Nokia declined by six billion euros. At the closing on Wednesday, Nokia's market value stood at 26.6 billion euros and in late morning on Thursday at around 20 billion.

Nokia's Chief Rajeev Suri said in the press statement that "some of the risks related to the initial phase of 5G are now materializing".

Suri also mentioned profitability challenges in China and pricing pressure in early 5G deals. Nokia expects it will be able to progressively mitigate these issues over the course of next year.

To do so, it will increase investment in 5G in order to accelerate product road-maps and product cost reductions, and in the digitization of internal processes to improve its overall productivity.