Nokia narrows third quarter loss to 104 mn Euros

New Delhi, PTI | Updated : 29 October 2013, 08:54 PM

Finnish telecom major Nokia has narrowed its loss to 104 million Euro (about Rs 880 crore) for the third quarter to September from 934 million Euro (Rs 7,901.1 crore) in the same period a year ago.

The net sales of the group, however, continued to decline. The group posted 22 per cent dip in net sales to 5,662 million (Rs 47,917 crore) during to reported quarter from 7,239 million Euro (Rs 61,259 crore) registered in corresponding period last fiscal.

"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," Nokia CFO and
interim President Timo Ihamuotila said in a statement.

Despite series of launches of mobile devices in high end and economy segment mobile phones, the net sales of the devices and services segment of Nokia declined by 19 per cent to 2,898 million euro in Q3, 2013 from 3,563 million euro in Q3, 2012.

Nokia, which segregates devices business in to smart devices and mobile phones, saw increase in sales of smart devices both in terms of revenue and volumes by 28 per cent and 40 per cent respectively.

The Finnish major sold 64.6 million mobile devices during the three month period ended September 30, 2013, 22 per cent less, compared to 82.9 million sold in same period a year ago.

The mobile phone sales of the company declined by 27 percent in the reported quarter to 55.8 million from 76.6 million sold in corresponding period last fiscal.

Post sales of its devices business, Nokia will be left with telecom equipment business of Nokia Solutions and Network (NSN) and location services business.

"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," Ihamuotila said.

Nokia said that it expects NSN's non-IFRS operating margin in the fourth quarter 2013 to be approximately positive 12 percent, plus or minus four percentage points.

The net sales of NSN declined by 26 per cent to 2,592 million euro in Q3, 2013 from 3,501 million euro in same period last fiscal.

The operating profit of NSN also fell by about 24 per cent to 166 million euro in the reported quarter from 218 million euro in Q3, 2012.

Here business of Nokia posted decline of about 20 per cent in net sales at 211 million euro from 265 million euro reported in same quarter last fiscal. This business of Nokia posted operating profit of 14 million euro in Q3, 2013 which in the same period a year ago has registered loss of 56 million euro.

First Published: Tuesday, October 29, 2013 08:52 PM

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