Nokia aims strong business growth in 2023

Telecom equipment maker Nokia today revealed that it posted sales of €7.44 billion (+16 percent) and profit of €929 million in Q4 2022.
Nokia @ MWC 2022Nokia’s sales and annual profit touched €24.91 billion (+12 percent) and €2.48 billion, respectively, in 2022.

Nokia has generated sales of €2.64 billion (+7 percent) from the Asia Pacific, €6.66 billion (+6 percent) Europe, €1.58 billion (+5 percent) from China, €1.29 billion from India,  €1.22 billion from Latin America, €1.96 billion from Middle East and Africa, €7.18 billion from North America and €929 million from submarine business during 2022.

Nokia has generated sales of €19.91 billion from Communications service providers (CSP), €2 billion from Enterprise, and €1.59 billion from Licensees in 2022.

Nokia generated quarterly sales of €2.7 billion (+20 percent) from Network Infrastructure, €2.96 billion (+7 percent) from Mobile Networks, €1.06 billion (+10 percent) from Cloud and Network Services and €679 million from Nokia Technologies during the fourth quarter of 2022.

“We expect another year of growth and we are targeting full year net sales of between EUR 24.9 billion and EUR 26.5 billion which implies between 2 percent and 8 percent growth in constant currency. We are targeting a comparable operating margin in the range of 11.5 percent to 14.0 percent,” Nokia CEO Pekka Lundmark said in an earnings report.

The strong performance in Asia Pacific reflected double-digit growth across Network Infrastructure, Mobile Networks and Cloud and Network Services.

Sales in Europe increased at a double-digit rate in both Network Infrastructure and Mobile Networks. Growth in Network Infrastructure was driven by Fixed Networks and Optical Networks.

The growth in sales in India was related to Mobile Networks, as 5G deployments started to ramp in the fourth quarter. Network Infrastructure also saw strong growth driven by both Optical Networks and Fixed Networks.

Sales in Latin America increased primarily due to Network Infrastructure and Mobile Networks.

Middle East & Africa growth was driven by Cloud and Network Services.

The double-digit decline in constant currency in North America reflected lower sales in Mobile Networks following significant strength in the first three quarters of 2022. This was offset by growth in Network Infrastructure and Cloud and Network Services, Nokia said.