Thursday, January 24, 2013

Nokia Has A Profitable Quarter With $585 Million In Profit, Breaking The Curse

Today is Januray 24th and it is the day in which Nokia reveals their quarterly earnings. Overall the results are positive with $585 million in profit on a 10.73 million quarterly revenue. This breaks the negative profit chain which has been hitting Nokia for 6 quarters in a row. But the bad news is still not ending as its return to a profitable quarter is mainly because of the success of their Nokia Siemens network which brought in quite a bulk of their total income. Additionally the YoY mobile growth dropped by 74% which is from 335.6m to 86.3; not just that, their smart devices sales also dropped by 81% which is from 35.1m to a mere 6.6m. Their average selling price for smart device and WP device also rose in which is also a factor. The bad news ends with Nokia will not be paying the shareholders dividens this year despite their profitability. 
"We are very encouraged that our team’s execution against our business strategy has started to translate into financial results.Most notably we are pleased that Nokia Group reached underlying operating profitability in the fourth quarter and for the full year 2012. While the first half of 2012 was difficult for Nokia Group, in Q4 2012 we strengthened our financial position, improved our underlying operating margin in Devices & Services, introduced the HERE brand to expand our mapping and location experiences, and drove record profitability in Nokia Siemens Networks.We remain focused on moving through our transition, which includes continuing to improve our product competitiveness, accelerate the way we operate and manage our costs effectively.All of these efforts are aimed at improving our financial performance and delivering more value to our shareholders."Nokia CEO Stephen Elop
Source: TheVerge & WSJ
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