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HELSINKI (AP) — Wireless and fixed-network equipment maker Nokia reported substantially improved third-quarter profits and higher sales Thursday on the back of strong demand for 5G technology from operators.

The company, based in Espoo, Finland, reported net profit of 551 million euros ($539 million) for the July-September period, up 19% from 463 million euros a year earlier. Net income attributable to shareholders was up 21% at 550 million euros from 454 million euros a year earlier.

Nokia’s reported sales were up 16% to 6.2 billion euros.

CEO Pekka Lundmark said the company’s third-quarter performance “demonstrates we are delivering on our ambition to accelerate growth.”

“As we start to look beyond 2022, we recognize the increasing macro and geopolitical uncertainty within which we operate,” Lundmark said in a statement. “While it could have an impact on some of our customers’ … spending, we currently expect growth on a constant currency basis in our addressable markets in 2023.”

Nokia is one of the world’s main suppliers of 5G — the latest generation of broadband technology — along with Sweden’s Ericsson, China’s Huawei and South Korea’s Samsung.

“Considering our recent success in new 5G deals in regions like India which are expected to ramp up strongly in 2023, we believe we are firmly on a path to outperform the market and to make progress towards achieving our long-term margin targets,” Lundmark said.

The Finnish company recently closed two significant 5G deals with Bharti Airtel and Reliance Jio, two major Indian telecom operators.

Nokia’s largest market area during the quarter was North America, where it generated turnover of 2.3 billion euros ($2.2 billion), followed by Europe and Asia Pacific.

On Monday, Nokia announced it would transform the company’s Canadian headquarters in Ottawa, Ontario, into a research and development center focusing on network technology, AI and cyber security among other things.

The investment, to be realized in cooperation with Canada’s federal, provincial and municipal authorities, is worth more than 340 million Canadian dollars ($248 million) and the facility is expected to be opened in 2026.