Nokia’s operating profits increased by 66% year-on-year (y-o-y) to €454 million in Q4 2014 from €274 million in the same quarter last year. The company had reported an operating loss of €810 million in the third quarter of 2014. Nokia reported a net sales of €3.8 billion compared to €3.5 billion in the same quarter last year.
Nokia recovered on strong performance from its network equipment and services business and HERE business. Earlier in April 2014, Nokia had sold its devices and services unit to Microsoft for $7.2 billion. The company now reports the devices business as discontinued operations which clocked in a profit of €117 million for the fourth quarter. Additionally, Nokia’s discontinued operations had net cash inflows of approximately €140 million related to the proceeds from the sale of Nokia’s Devices & Services business to Microsoft.
– HERE announced an agreement with Baidu, the Chinese Internet search provider, to power its new desktop and mobile map services outside of China.
– HERE made its Android beta app available for all compatible Android smartphones and made it available for download through Google Play.
– It also extended its voice-guided navigation offering to 18 more countries and territories, bringing the total number of freely navigable countries to 118.
– HERE achieved 15% year-on-year growth in net sales, from €255 million in Q4 2013 to €292 million in Q4 2014. In Q4 2014, HERE sold map data licenses for the embedded navigation systems of 3.9 million new vehicles, compared to 3.2 million vehicles in Q4 2013.
– Nokia announced the launch of the N1, the first Nokia-branded Android tablet and the company’s first brand licensed consumer device following the sale of its Devices & Services business to Microsoft. Shortly after the end of 2014, Nokia began selling the Nokia N1 in the first quarter 2015 in China, with other markets to follow.
– Nokia Technologies achieved 23% y-o-y 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 Nokia’s Devices & Services business to Microsoft, as well as higher intellectual property licensing income from certain other licensees.
Devices – Discontinued business
– Discontinued operations at Nokia had a profit of €117 million mainly driven by the recognition of a tax benefit related to the utilization of unrecognized tax attributes created in conjunction with the sale of the Devices & Services business to Microsoft.
– The company does not disclose the actual number of devices sold, but Ubergizmo reports that Microsoft managed to sell 10.5 million Lumia units compared to the 9.3 million units in the same quarter last year.
Nokia Solutions and Networks
– In India, Nokia Networks won two 3G networks and related services contracts. Tata DOCOMO modernized its 3G network based on Nokia Networks’ Single RAN (radio access network) products and services and Bharti Airtel granted Nokia Networks a contract for enhancing the operator’s 3G network.
– Nokia Networks and China Mobile, the world’s biggest mobile operator, signed an agreement on the second phase of the rollout of China Mobile’s 4G network in 2014 and 2015.
– At the end of 2014, Nokia Networks had 162 commercial LTE contracts and was a key LTE radio supplier to 15 of the world’s top 20 LTE operators
-Nokia networks reported a net sales of €3.4 billion. The Nokia Networks division had reported net sales €3.1 billion in Q4 2013 representing a 8% y-o-y growth in net sales.