NOKIA Corp says its net loss narrowed in the second quarter to 227 million euros ($A324.8 million) compared to a net loss of 1.41 billion euros a year earlier.
The struggling Finnish mobile phone maker said sales fell by 24 per cent to 5.7 billion euros from 7.5 billion in the second quarter last year.
Sales of the company's flagship Lumia phones increased by 32 per cent compared to the first quarter to 7.4 million handsets.
The results, however, were weaker than analysts had expected.
The company's share price fell three per cent to 2.99 euros at the Helsinki Stock Exchange.
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