Nokia’s operating profits declined by 13% year-on-year (YoY) to €265 million in Q1 2015 from €305 million in the same quarter last year. The company had reported an operating profit of €524 million in the previous quarter. The company reported net sales of €3.2 billion compared to €2.7 billion in the same quarter last year.
Nokia Networks was the worst performing among the three major businesses Nokia has left post the sale of its devices and services business to Microsoft, in April last year. Nokia Networks’ operating profit was down 61% YoY to €85 million from €216 million in the same quarter last year. On the other hand, HERE posted operating profits of €19 million, up 90% YoY, and Nokia Technologies posted operating profits of €193 million, up 124% YoY.
– Registered 25% YoY growth in net sales, with 29% YoY increase in sales of new vehicle licenses for embedded navigation systems.
– Sold a total of 3.6 million units of new vehicle licenses for embedded navigation systems.
– HERE and BMW AG collaborated to create connected driver experiences, which was demonstrated at the Consumer Electronics Show in January 2015.
– Released an update to its HERE Mobile SDK, which businesses can license and use to develop their own apps running HERE’s maps and location services.
– Launched HERE map app for iPhone.
– It’s worth noting that, last month, Nokia had said that it has initiated a review of strategic options for its HERE business, which might lead to sale. HERE is the last consumer-facing business left with Nokia.
– Sales of the Nokia N1 Android tablet started in China at the end of January 2015. The N1 tablet was launched in the previous quarter, and is the company’s first brand licensed consumer device following the sale of its Devices & Services business to Microsoft.
– Nokia Technologies achieved 103% YoY growth in net sales and 124% growth in operating profit, primarily due to non-recurring adjustments to accrued net sales from existing agreements, revenue share related to previously divested intellectual property rights, and intellectual property rights divested in the first quarter 2015. In addition, net sales and operating profit benefited from higher intellectual property licensing income from existing licensees.
– Signed new contracts with China Telecom, Bharti Airtel in India and MegaFon in Russia.
– Introduced Nokia Radio Cloud, for cloud-based networks, and Nokia Predictive Marketing, which will provide contextual real-time data for segment and target marketing messages.
– Signed Telco Cloud deal with Orange, where the companies carried out a Telco Cloud proof of concept.
– Reported 15% YoY net sales growth, primarily driven by growth in four out of the six regions Nokia Networks is operational in.
– Reported 21% YoY growth in Global Services net sales, primarily driven by strong growth in the network implementation business line, and 10% YoY growth in Mobile Broadband net sales, primarily driven by overall radio technologies, particularly LTE.
Other recent developments
– Nokia acquired French telecommunications equipment company Alcatel-Lucent for €15.6 billion, in an all share deal, in April this year. The combined company will be called Nokia Corporation, with headquarters in Finland and a strong presence in France. Risto Siilasmaa is planned to serve as Chairman, and Rajeev Suri as Chief Executive Officer.
– Nokia Technologies confirmed that it has no plans to manufacture and/or sell consumer handsets, as had been reported in the media, also in April.