Nokia Drops Back into Quarterly Loss As Revenues Plunge
Published on: 23rd Jan 2014
By: Ian Mansfield
Nokia has announced its fourth quarter financial results as it prepares to sell off its handsets business and announced that its revenues declined by 21 percent to EUR3.48 billion (USD4.7 billion).
The company posted a net loss for the quarter of EUR25 million (US$33.9 million), compared to a profit of EUR193 million a year ago.
NSN, the network infrastructure division that will form the bulk of Nokia going forward saw its fourth-quarter revenues decline by 22 percent to EUR3.1 billion, split roughly equally between equipment sales and managed services.
The company said that some of the decline was due to asset disposals, but that it would have still seen a drop in sales of 15% without that factor.
The company saw declines in all markets, except China where there was a slight increase.
The handsets division, already described as a discontinued operation by the company saw further declines. The company shipped fewer basic mobile phones, although it says it saw a rise in smartphone sales, without elaborating on the actual numbers.
The company's mapping division, Here's external net sales grew to EUR 225 million, an increase of 10% year-on-year.
Risto Siilasmaa, Nokia Chairman and interim CEO commented on the company's progress: "The fourth quarter of 2013 was a watershed moment in Nokia's history. Having received overwhelmingly strong support from our shareholders at our extraordinary general meeting in November for the sale of our phones business to Microsoft, we are diligently working towards defining Nokia's future direction."