Nokia Networks today said its sales fell 5 percent to EUR 3,210 million or $3,624 million in the fourth quarter of 2015.
The revenue of Nokia Networks grew 3 percent to EUR 11,490 million or $12,974 million in 2015.
Greater China and Middle East and Africa were the strongest regions.
Nokia CEO Rajeev Suri said: “While the competitive environment in Networks remained generally stable in the fourth quarter, we do expect some market headwinds in 2016 as 4G/LTE rollouts in China and some other markets start to slow. The first quarter, in particular, looks quite challenging as customers assess their CAPEX plans in light of increasing macro-economic uncertainty.
“In this environment, we will continue our sharp focus on operational and commercial discipline, ensure we deliver synergies as quickly as possible, and focus our energy on targeting the growth segments within the overall telecom market,” said Rajeev Suri.
Nokia Networks sale performance in regions
Asia Pacific dips 12 percent
Japan drops
Vietnam falls
Australia drops
India grows
Philippines increases
Europe drops 7 percent
Russia flops
Italy dips
United Kingdom up
Ukraine grows
North America decreases 6 percent
Latin America drops 9 percent
Greater China up 17 percent
Middle East and Africa up 2 percent
Nokia Networks generated EUR 1,723 million (–2 percent) from Mobile Broadband and EUR 1,487 million (–6 percent) from Global Services.
Mobile Broadband business of Nokia Networks represented 54 percent of sales against 52 percent in the fourth quarter 2014 and 55 percent in the third quarter 2015.
Global Services of Nokia Networks represented 46 percent of sales, compared to 47 percent in the fourth quarter 2014 and 45 percent in the third quarter 2015.
5 percent drop in Nokia Networks sales was due to lower sales in Global Services and Mobile Broadband, as well as the absence of non-recurring intellectual property rights (IPR) net sales which benefitted the year-ago quarter.
Global Services sales decreased 6 percent primarily due to lower net sales across all business lines except for care, which increased very slightly. Mobile Broadband sales decreased 2 percent primarily due to lower net sales in core networking technologies and lower resale of third party equipment, partially offset by growth in overall radio technologies.
Within overall radio technologies, the growth was primarily due to LTE. In addition, small cells grew strongly in percentage terms on a year-on-year basis.
Nokia Networks generated 25 percent revenue from Europe, 11 percent form Middle East & Africa, 15 percent from Greater China, 25 percent from Asia Pacific, 15 percent from North America and 9 percent from Latin America.
Baburajan K
[email protected]
