Nokia’s Q4 income down 20%, full-year revenues dip 22%

 

Telecom Lead Europe: Nokia has posted 20 percent decrease in Q4 2012 income to €8.041 billion from €10.005 billion in Q4 2011.

Nokia’s revenue includes income from Nokia devices, Nokia Siemens Networks and location & commerce businesses.

Decreasing the full year income by 22 percent, Nokia posted revenue of €30.176 billion against €38.659 billion in 2011.

However, Stephen Elop, Nokia CEO, said: “We are very encouraged that our team’s execution against our business strategy has started to translate into financial results. Most notably we are pleased that Nokia Group reached underlying operating profitability in the fourth quarter and for the full year 2012.”

“While the first half of 2012 was difficult for Nokia Group, in Q4 2012 we strengthened our financial position, improved our underlying operating margin in Devices & Services, introduced the HERE brand to expand our mapping and location experiences, and drove record profitability in Nokia Siemens,” Elop added.

Nokia’s Devices & Services division sold 15.9 million units of smartphone in the fourth quarter 2012. This includes 9.3 million Asha full touch smartphones in Mobile Phones; 4.4 million Lumia smartphones in Smart Devices and 2.2 million Symbian smartphones in Smart Devices.

READ FULL REPORT: Nokia Financial Performance in Q4 2012

Nokia’s devices strategies in China did not work out well as the income decreased 79 percent. The decrease in Greater China net sales was primarily due to Smart Devices business unit, most notably lower net sales of Symbian devices. The decrease in Greater China volumes was primarily due to Smart Devices business unit, most notably lower volumes of Symbian devices as well as lower volumes of Mobile Phones devices.

North America produced 270 percent increase in income in Q4. The increases in North America net sales and volumes were primarily due to Nokia’s Smart Devices business unit, most notably higher net sales and volumes of our Lumia devices.

DEVICES & SERVICES NET SALES
BY GEOGRAPHIC AREA
EUR million Q4/2012 Q4/2011 YoY
Change
Q3/2012 QoQ
Change
Europe 1 210 1 922 -37% 985 23%
Middle East & Africa 745 1 065 -30% 682 9%
Greater China 213 1 008 -79% 278 -23%
Asia-Pacific 941 1 297 -27% 977 -4%
North America 196 53 270% 36 444%
Latin America 549 652 -16% 605 -9%
Total 3 854 5 997 -36% 3 563 8%

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