Free Newsletter

Use the pretty hair extensions styling spray as a good helper. The finished styling volume doesn't have to worry even if it clip in hair extensions rains. If you are a short-haired little fairy, you want to make the hair wigs overall shape a little more playful. You can also try to add a buckle to the remy hair extensions end of the hair like the B-station up to the main meter.
QUICK POLL
  • Which training workshop is of most value to your organisation?
  • Preparing your business for the Internet of Things
  • The Internet of Things and Cloud computing
  • Radio technologies for connecting the Internet of Things
  • Smart Cities and intelligent infrastructure
  • WebRTC and the end of the telco
EVENTS
Meet the leaders of the mobile app economy ? Open Mobile Summit, London, June 8-9
Navigation Strategies Europe 2011
ITU Telecom World, 24-27 October 2011 at Palexpo, Geneva, Switzerland
Ubiquitous Location and Positioning Technology, 6th-7th December 2011, Chicago
Advertize your telecoms job

Nokia grows sales for first time since 2011

Strong mobile broadband sales fuel 13% rise in revenues in Q3 and upgraded outlook for operating margins

By CAROLINE GABRIEL

Published: 23 October, 2014

READ MORE:

Free of its burdensome handset unit, Nokia has reported its second quarter as a primarily infrastructure-driven firm, announcing a strong improvement in Q314 figures and its first year-on-year sales increase for three years.

New LTE contracts in North America and China were the key factors in a 13% year-on-year rise in sales to €3.32bn. Nokia Networks was initially slow to net the massive first-wave LTE deals which rivals Ericsson and Alcatel-Lucent secured in the US and other markets. But it has been strong in the second wave, gaining flagship US deals with T-Mobile and Sprint, and a healthy portion of China Mobile's vast TD-LTE tenders.

Before the sale of the devices division to Microsoft, Nokia Networks had already gone through a major reorganization, doubling down on mobile broadband alone, and this is starting to deliver results.

In Q3, adjusted operating profit was up 33% year-on-year to €457m, a performance which led the company to improve its outlook for the full year in the critical metric of operating margin. It now expects an annual figure around 11%, up from a previous guidance of between 5% and 10%, driven by a change in its revenue mix.

The third quarter saw a higher than expected proportion of revenue (over 48% of the group total) coming from mobile broadband sales, which generate higher margins than services or network modernization programs. The shift from modernization and services to capacity investments has also had a positive effect on Ericsson's recent performance. However, in the current Q4, Nokia expects a higher proportion of revenues to come from services than in Q3.

Net profit rose to €760m from €138 million a year earlier but the firm reported a pre-tax loss of €834m, reversing a year-ago profit of €202m. This was because of a €1.2bn charge to write down the value of goodwill at the mapping division, Here, one of the two other units (along with an IPR/R&D operation) which was retained after the devices sell-off. That charge was offset by a one-time gain of €2.1bn on deferred tax assets in Finland and Germany. Nokia finished the quarter with net cash of €5bn.

The Networks division accounts for the bulk of sales - 88% of the total, or €2.94bn, in the third quarter, a figure which was up 13% on the year-ago period, the same as the overall group sales growth. Within Networks, the star was mobile broadband, whose sales were up 33% to €1.67bn or 57% of the total, a clear justification of the decision to make this the core focus of Nokia's growth strategy. By contrast, global services revenues were down 5% to €1.27bn.

Sales growth was highest in the booming Greater China market, which delivered revenues of €384m to Nokia Networks, up 38% year-on-year, while its largest - but recently most troubled - region, Europe, showed encouraging signs of recovery, with sales up 9% to €767m. Though the shift towards China carries with it the fear of lower margins, for now Nokia has addressed that issue convincingly, and Networks' operating margin was 13.5% for the quarter, well ahead of analyst expectations of just under 10%. In the second quarter its figure was 11%.

Pages: 1 | 2

Related Stories

COMMENTS

Add Comment
No comments yet. Be the first to add a comment!
MARKET PLACE

    European Carrier Mobile Broadband Network Performance

    Analysing and comparing the data speed, latency, network quality and smartphone penetration for 94 mobile carriers in 28 European countries....

    Next Generation Haptics: Market Analysis and Forecasts

    An in-depth study of the growing popularity of haptics-enabled tactile feedback on mobile devices to augment UI interactions and enrich...
WHITE PAPERS

    Satellite Phones: Will Dual Mode Help the Phoenix Rise from the Ashes?

    Satellite phones have followed an arduous path since their much-hyped launch more than a decade ago. The hype was followed by an e...

    Mobile Widget Platform Market Analysis: Understanding the Business Case and ROI

    This white paper presents an analysis of the mobile widget platform market, as well as metrics supporting a mobile carrier?s busin...

POST COMMENT

You must be a registered user to post a comment. or
Username *
Email *
Comment *