Nokia: Interim Report for Q3 2013 – 8.8 Million Lumia Windows Phone Devices SoldOctober 29, 2013 No Comments
Nokia has published their company interim report for Q3 2013. In the report they also announced that they sold 8.8 Million Lumia Windows Phone devices in Q3 2013.
Nokia Corporation Interim Report for Q3 2013 and January-September 2013
October 29, 2013 at 13.00 (CET+1)
This is a summary of the third quarter 2013 and January – September 2013 interim report published today. The complete third quarter 2013 and January – September 2013 interim report with tables is available at http://www.results.nokia.com/results/Nokia_results2013Q3e.pdf.
Investors should not rely on summaries of our interim reports only, but should review the complete interim reports with tables.
FINANCIAL AND OPERATING HIGHLIGHTS
Third quarter 2013 highlights:
Nokia Group non-IFRS EPS in Q3 2013 was EUR 0.01; reported EPS was EUR -0.02 – Nokia Group achieved underlying operating profitability for the fifth consecutive quarter, with a Q3 non-IFRS operating margin of 3.8%, driven by strong performances by Nokia Solutions and Networks (NSN) and HERE.- Nokia Group ended Q3 with a strong balance sheet and solid cash position, with gross cash of EUR 9.1 billion and net cash of EUR 2.4 billion. Excluding the acquisition of Siemens’ stake in NSN for EUR 1.7 billion, Nokia Group net cash was approximately flat sequentially. At the end of Q3 NSN’s contribution to Nokia Group gross and net cash was EUR
2.7 billion and EUR 1.5 billion, respectively. – NSN achieved underlying profitability for the sixth consecutive quarter, with Q3 non-IFRS operating
margin of 8.4%, reflecting strong gross margin and continued progress relative to its strategy in a seasonally weak quarter. – HERE achieved Q3 non-IFRS operating margin of 9.5%, reflecting solid gross margin and operational efficiency. – Devices & Services achieved Q3 non-IFRS operating margin of negative 1.6%.
Nokia Group net sales in Q3 2013 were EUR 5.7 billion, flat quarter-on-quarter
- NSN Q3 net sales
decreased 7% quarter-on-quarter to EUR 2.6 billion, primarily reflecting seasonality and NSN’s strategic focus.
- HERE Q3 net sales
decreased 9% quarter-on-quarter to EUR 0.2 billion, primarily due to lower seasonal sales to vehicle customers.
- Devices & Services Q3
net sales increased 6% quarter-on-quarter to EUR 2.9 billion.
- Lumia Q3 volumes increased 19% quarter-on-quarter to 8.8 million units, reflecting our recently broadened Lumia product range and strong customer demand, particularly for the Lumia 520.
- Mobile Phones Q3
volumes increased 4% quarter-on-quarter to 55.8 million units, demonstrating solid performance across the majority of our portfolio due to recently launched devices, particularly the Nokia 105, the Asha 501, and the Nokia 210.
Commencing the fourth quarter 2013, and subject to shareholder approval of the sale of substantially all of its Devices & Services business at our Extraordinary General Meeting (EGM), Nokia expects to report substantially all of its Devices & Services business as discontinued operations. If Nokia Group would have reported substantially all of its Devices & Services business as discontinued operations in the third quarter 2013 the net sales of its continuing operations would have been EUR 2.9 billion, which is EUR 2.8 billion lower than Nokia Group net sales of EUR 5.7 billion. However, Nokia Group’s non-IFRS operating margin of its continuing operations would have been 11.5%, which is 7.7 percentage points higher than the third quarter 2013 non-IFRS operating margin of 3.8%.
January-September 2013 highlights:
Nokia Group net sales in January-September 2013 were EUR 17.2 billion – Nokia Group net sales for the nine months ended September 2013 decreased 22% year-on-year.
- Reported EPS for the nine months ended September 2013 was EUR -0.16, compared to EUR -0.89 in the nine months ended September 2012.
Risto Siilasmaa, Nokia Chairman and interim CEO commented on the company’s progress: “Subject to the planned completion of the Microsoft transaction, Nokia will have three established businesses: NSN, HERE and Advanced Technologies.
Our strategy work is making good progress and it has already become clear that there are meaningful opportunities for all of our business areas: NSN, HERE and Advanced Technologies. In all of these businesses, we have strong assets that we continue to invest in for the long term benefit of our customers and shareholders.”
Commenting on the third quarter results, Timo Ihamuotila, Nokia CFO and interim President, said:
“The third quarter was among the most transformative in our company’s history. We became the full owner of NSN and we agreed on the sale of our handset operations to Microsoft, transactions which we believe will radically reshape the future of Nokia for the better. Subject to the completion of the Microsoft transaction, Nokia will have significantly improved earnings profile, strong financial position and a solid foundation from which to invest.
We are pleased that NSN and HERE both generated solid profitability in what was a seasonally weak third quarter and at a time when we
continue to make significant R&D investments into future growth opportunities.”
You can read the whole summary here