Nokia Reports 3% Drop in Net Sales, Driven by Nokia Technologies

Published 2 hours agoNOK

Nokia Reports 3% Drop in Net Sales, Driven by Nokia Technologies

Nokia announced a 3% decline in net sales year-over-year on a constant currency and portfolio basis, though the decline narrows to 1% when accounting for comparisons with previous years in Nokia Technologies, as highlighted by figures from Insider Monkey. This change comes amid varying performance across its business segments.

The Network Infrastructure division showed robustness with an 11% increase, and Cloud and Network Services rose by 8%. Mobile Networks managed a 2% growth, reflecting a mixed performance in the company's operational areas. Moreover, Nokia completed the acquisition of Infinera in Q1, which is set to expand its Optical Networks presence and strengthen ties with hyperscalers, a move that is reportedly gaining positive traction with customers.

In terms of financial stability, Nokia's gross margin fell by 820 basis points to a comparable 42.3%, impacted significantly by reduced sales in Nokia Technologies and a EUR 120 million charge affecting Mobile Networks. Despite a decline in the comparable operating margin to 3.6%, reported margins dipped to -1.1% due to strategic investment expenses. The company maintains its financial outlook for fiscal year 2025, targeting a comparable operating profit of EUR 1.9 to 2.4 billion and forecasting a free cash flow conversion of 50% to 80%.

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Nokia Reports 3% Drop in Net Sales, Driven by Nokia Technologies

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Nokia announced a 3% decline in net sales year-over-year on a constant currency and portfolio basis, though the decline narrows to 1% when accounting for comparisons with previous years in Nokia Technologies, as highlighted by figures from Insider Monkey. This change comes amid varying performance across its business segments. The Network Infrastructure division showed robustness with an 11% increase, and Cloud and Network Services rose by 8%. Mobile Networks managed a 2% growth, reflecting a mixed performance in the company's operational areas. Moreover, Nokia completed the acquisition of Infinera in Q1, which is set to expand its Optical Networks presence and strengthen ties with hyperscalers, a move that is reportedly gaining positive traction with customers. In terms of financial stability, Nokia's gross margin fell by 820 basis points to a comparable 42.3%, impacted significantly by reduced sales in Nokia Technologies and a EUR 120 million charge affecting Mobile Networks. Despite a decline in the comparable operating margin to 3.6%, reported margins dipped to -1.1% due to strategic investment expenses. The company maintains its financial outlook for fiscal year 2025, targeting a comparable operating profit of EUR 1.9 to 2.4 billion and forecasting a free cash flow conversion of 50% to 80%.