Nokia today said its Q1 2014 revenue dipped 15 percent to EUR 2,664 million. Its network business fell 17 percent, while HERE location service declined 3 percent and Technologies income rose 7 percent.
This will be the first quarter without Nokia phone business that has been sold to enterprise IT vendor Microsoft in a $7.2 billion deal that closed to 25 April. Nokia phone business revenue decreased 30 percent to EUR 1,929 million with operating loss of EUR 306 million against operating loss of 73 million in Q1 2013.
Nokia said its overall operating profit increased 20 percent to EUR 304 million in Q1 2014. In Q1 2014, operating profitability for Nokia is 11.4 percent of net sales compared to 8.1 percent of net sales in Q1 2013.
Nokia Networks (earlier known as Nokia Solutions and Networks or NSN) business posted 17 percent decrease in Q1 revenue to EUR 2,328 million.
Its operating profit increased 10 percent to EUR 216 million. Networks operating profit was 9.3 percent of net sales compared to 7 percent in Q1 2013. This was due to a higher gross margin which benefitted from a higher proportion of software sales, significant efficiency improvements in Global Services and a higher proportion of Mobile Broadband sales.
Out of EUR 2,328 million, mobile broadband business, Nokia Networks’ main focus area, posted flat growth to EUR 1,250 million. Global services decreased 25 percent to EUR 1,069 million.
Nokia said its location service business revenue decreased 3 percent to EUR 209 million. HERE external net sales were EUR 185 million, an increase of 13 percent year-on-year, driven by strong sales to vehicle customers.
HERE operating profit was EUR 10 million against an operating loss of EUR 5 million.
Nokia said its technology business – primarily IP license revenue – increased 7 percent to EUR 131 million with an operating profit of EUR 86 million that rose 18 percent.