Nokia reports better-than-expected Q4 results

Nokia has reported net sales in Q4 2014 to end-December 2014 of €3.8 billion (US$4.3 billion), up 8.6 per cent year-on-year. The company’s full-year net sales amounted to €12.7 billion, flat on the previous year.

Overall, Nokia recorded profit (non-IFRS) for Q4 of €356 million, up 12 per cent year-on-year, while profit (non-IFRS) for the year was €1.095 billion, up 25 per cent year-on-year.

Nokia broke down the results for its operating entities accordingly:

Nokia Networks

· Nokia Networks achieved eight per cent year-on-year growth in net sales, from €3.1 billion in Q4 2013 to €3.4 billion in Q4 2014, primarily due to strong performance in North America.

· Nokia Networks achieved strong underlying operating profitability with non-IFRS operating profit of €470 million, or 14 per cent of net sales, compared to €349 million, or 11.2 per cent of net sales in Q4 2013.

· Mobile broadband achieved 13 per cent year-on-year increase in net sales, driven by strong growth in overall core networking technologies and modest growth in overall radio technologies. Within radio technologies, strong year-on-year growth in LTE was partially offset by a decline in mature radio technologies.

· Global Services returned to year-on-year growth for the first time since Q4 2012, with net sales up by three per cent and particularly strong growth in the strategically important systems integration business line.

HERE

· HERE achieved 15 per cent year-on-year growth in net sales, from €255 million in Q4 2013 to €292 million in Q4 2014, primarily due to HERE’s leading market position and positive trends in the automotive market.

· In Q4 2014, HERE sold map data licences for the embedded navigation systems of 3.9 million new vehicles, compared to 3.2 million vehicles in Q4 2013.

Nokia Technologies

· Nokia Technologies achieved 23 per cent year-on-year growth in net sales, from €121 million in Q4 2013 to €149 million in Q4 2014, primarily due to Microsoft becoming a more significant intellectual property licensee in conjunction with the sale of substantially all of Nokia’s Devices & Services business to Microsoft, as well as higher intellectual property licensing income from certain other licensees.

· In Q4 2014, Nokia Technologies non-IFRS operating expenses increased both year-on-year and sequentially primarily due to investments in business activities, which target new and significant long-term growth opportunities, as well as increased activities related to anticipated and ongoing patent licensing cases.