ESPOO, FINLAND ( PRESS RELEASE )
Solid financial and operational performance across the company
This is a summary of the Nokia Corporation interim report for third quarter 2016 and January-September 2016 published today. The complete interim report for third quarter 2016 and January-September 2016 with tables is available at www.nokia.com/financials. Investors should not rely on summaries of our interim reports only, but should review the complete interim reports with tables.
FINANCIAL HIGHLIGHTS
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Non-IFRS net sales in Q3 2016 of EUR 6.0 billion (reported: EUR 5.9 billion). In the year-ago quarter, non-IFRS net sales would have been EUR 6.4 billion on a comparable combined company basis (reported: EUR 3.0 billion on a Nokia stand-alone basis).
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Non-IFRS diluted EPS in Q3 2016 of EUR 0.04 (reported: EUR negative 0.02).
Nokia’s Networks business
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12% year-on-year net sales decrease in Q3 2016. Consistent with our outlook for the wireless infrastructure market, net sales were weak in Mobile Networks within Ultra Broadband Networks, and accounted for approximately 80% of the overall decrease in Nokia’s Networks business. IP Networks and Applications also contributed to the decrease. This was partially offset by growth in Fixed Networks within Ultra Broadband Networks.
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In Q3 2016, solid gross margin of 37.2% and operating margin of 8.1%, supported by continued strong operational performance and cost controls.
Nokia Technologies
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109% year-on-year net sales increase and 168% operating profit increase in Q3 2016. Excluding the impact of non-recurring licensing income, Nokia Technologies net sales and operating profit both would have grown by approximately 50% year-on-year, primarily due to higher intellectual property licensing income and, to a lesser extent, increased net sales resulting from the acquisition of Withings.
Group Common and Other
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41% year-on-year net sales increase in Q3 2016, with particularly strong growth in Alcatel Submarine Networks.
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Q3 and January-September 2016 non-IFRS results. Refer to note 1 to the interim financial statements for further details 1,2 |
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Combined company histori-cals2 |
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Combined company histori-cals2 |
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EUR million |
Q3’16 |
Q3’15 |
YoY change |
Q2’16 |
QoQ change |
Q1- |
Q1- |
YoY change |
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Net sales – |
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(6)% |
|
4% |
|
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(8)% |
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Net sales |
5 950 |
6 395 |
(7)% |
5 676 |
5% |
17 230 |
18 887 |
(9)% |
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Nokia’s Networks |
5 322 |
6 020 |
(12)% |
5 228 |
2% |
15 730 |
17 578 |
(11)% |
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Ultra Broadband |
3 903 |
4 469 |
(13)% |
3 807 |
3% |
11 438 |
12 999 |
(12)% |
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IP Networks and |
1 419 |
1 552 |
(9)% |
1 421 |
0% |
4 292 |
4 579 |
(6)% |
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Nokia Technologies |
353 |
169 |
109% |
194 |
82% |
745 |
661 |
13% |
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Group Common |
298 |
211 |
41% |
271 |
10% |
805 |
668 |
21% |
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Gross profit |
2 365 |
2 410 |
(2)% |
2 202 |
7% |
6 771 |
7 170 |
(6)% |
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Gross margin % |
39.7% |
37.7% |
200bps |
38.8% |
90bps |
39.3% |
38.0% |
130bps |
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Operating profit |
556 |
682 |
(18)% |
332 |
67% |
1 233 |
1 607 |
(23)% |
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Nokia’s Networks |
432 |
678 |
(36)% |
312 |
38% |
1 081 |
1 399 |
(23)% |
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Ultra Broadband |
326 |
478 |
(32)% |
228 |
43% |
788 |
954 |
(17)% |
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IP Networks and |
106 |
200 |
(47)% |
84 |
26% |
293 |
445 |
(34)% |
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Nokia Technologies |
225 |
84 |
168% |
89 |
153% |
420 |
381 |
10% |
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