Thursday, October 25, 2018

Nokia posts net sales of EUR 5.5 billion, up 1%

Nokia reported net sales of EUR 5.5 billion for Q3 2018, compared to EUR 5.5 billion in Q3 2017. On a constant currency basis, reported net sales grew by 1% year on year. Nokia achieved year-on-year growth across all five of its Networks business groups, as well as in Nokia Technologies.

Reported diluted EPS in Q3 2018 was negative EUR 0.02, compared to negative EUR 0.03 in Q3 2017, primarily driven by lower restructuring and impairment charges, partially offset by the absence of non-recurring catch-up licensing net sales, which benefitted the year-ago period, our gross profit performance and income taxes.

"Nokia's third-quarter results validate our earlier view that conditions would improve in the second half of 2018. This was particularly evident in our excellent momentum in orders, growth across all five of our Networks business groups, and improved profitability compared to the first half of the year. Despite some risks related to short-term delays in project timing and product deliveries, we remain on track to deliver on our full-year guidance," stated Rajeev Suri, Nokia's President and CEO.

Regarding its Networks business, Nokia said its order backlog was strong at the end of Q3 2018, and that it continues to expect commercial 5G network deployments to begin near the end of 2018.

Nokia Technologies posted a 19% year-on-year growth in recurring licensing net sales. A decrease in net sales on a year-on-year basis was primarily due to the absence of approximately EUR 180 million of non-recurring catch-up licensing net sales, which benefitted the year-ago period.