Nokia Revenues Decline, but Losses Shrink
Published on: 24th Jul 2014
Nokia has reported an 11 percent fall in its revenues, on a continuing operations basis, and a small loss of for the second quarter of this year.
Excluding the effects of the sale of the handsets business, the company saw sales down 11% to EUR2.94 billion, while the net loss shrank to EUR 28 million.
Following the disposal of the handsets division, 90 percent of the company's revenues now come from its networks infrastructure business. The underlying operating profit for the infrastructure division fell by 14 percent to EUR281 million, which was above analysts expectations.
Nokia Networks net sales in Q2 2014 were EUR 2.6 billion, compared to EUR 2.8 billion in Q2 2013.
Excluding foreign currency fluctuations and the divestments of businesses not consistent with its strategic focus, as well as the exiting of certain customer contracts and countries, Nokia Networks net sales would have increased 1% year-on-year.
The digital mapping division, Here reported flat sales year on year.
Nokia's President and CEO, Rajeev Suri said that the company's expectations for the full year 2014 have improved and they now expect full year underlying profitability for Networks to be at or slightly above the long term target range of 5 to 10 percent.