Nokia Exists!

Nokia’s net sales increased 9% year-on-year and were approximately flat sequentially. At constant currency, Nokia’s net sales would have decreased 1% both on a year-on-year and sequential basis. The year-on-year increase in Nokia’s net sales in the second quarter 2015 was primarily due to higher net sales in Nokia Networks and, to a lesser extent, in HERE and Nokia Technologies. On a sequential basis, the approximately flat net sales in the second quarter 2015 were primarily due to slightly higher net sales in Nokia Networks and HERE, partially offset by lower net sales in Nokia Technologies.

Nokia’s 15.6 billion euro ($17 billion) acquisition of Alcatel-Lucent announced in mid-April aims to position the company to better compete with market leader Ericsson  and low-cost Chinese powerhouse Huawei, by forging a strong number two in mobile with a more complete product line. Nokia’s non-IFRS operating profit increased 51% year-on-year in the second quarter 2015, primarily due to an increase in non-IFRS operating profit in Group Common Functions and, to a lesser extent, in Nokia Networks, HERE and Nokia Technologies.

«I am particularly pleased by Nokia Networks, which delivered improved performance overall, despite a year- on-year decline in net sales on a constant currency basis. Software sales were up significantly; core networking sales improved; we saw a reduced impact of strategic entry deals; Global Services had one of its best quarters in the history of the company; and costs remained well under control. While we expect the telecom infrastructure market to remain challenging, I believe that our disciplined operating model and strong execution capabilities will continue to differentiate us in this environment. Additionally, we remain highly focused on reducing costs and improving efficiency in order to mitigate the impact of market conditions. » Rajeev Suri,  President and CEO said in a statement.

«Nokia Technologies not only continued its licensing momentum in the quarter with a new agreement with LG, but also recently unveiled OZO, a truly game-changing virtual reality camera. The team in “Tech” has shown both disciplined execution in licensing and an entrepreneurial spirit in pursuing new growth opportunities. HERE continued to deliver well, again showing year-on-year sales and profitability growth. Our strategic review of that business is now in an advanced stage, and I would like to reiterate that our focus is on what is in the best interests of our shareholders and the long term future of HERE. Overall, with these results, we are well positioned to deliver on our full-year 2015 commitments»,  Rajeev Suri,  President and CEO said in a statement.