Nokia just released their Interim Q2 2014 results and here are the highlights.
– In Q2 2014, Nokia Networks achieved strong underlying operating profitability with non-IFRS operating profit of
EUR 281 million, or 11.0% of net sales, compared to EUR 328 million, or 11.8% of net sales, in Q2 2013. The
strong level of profitability for Nokia Networks in Q2 2014 and Q2 2013 was primarily due to operational efficiency
which benefitted both gross margin and operating profit.
– Nokia Networks net sales in Q2 2014 were EUR 2.6 billion, compared to EUR 2.8 billion in Q2 2013.
– Excluding foreign currency fluctuations and the divestments of businesses not consistent with its strategic focus,
as well as the exiting of certain customer contracts and countries, Nokia Networks net sales would have increased
– HERE net sales in Q2 2014 were approximately flat on a year-on-year basis. Excluding foreign currency
fluctuations, HERE net sales in Q2 2014 would have increased 2% year-on-year.
– In Q2 2014, HERE sold map data licenses for the embedded navigation systems of 3.3 million new vehicles
globally, compared to 2.7 million vehicles in Q2 2013.
– HERE continued to focus on investing in longer term transformational growth opportunities, and announced the
acquisitions of Medio and Desti.
– Nokia Technologies net sales increased sequentially in Q2 2014, primarily due to Microsoft becoming a more
significant intellectual property licensee in conjunction with the sale of substantially all of the Devices & Services
business to Microsoft.
Balance sheet highlights:
– Nokia ended Q2 2014 with a strong balance sheet and solid cash position with gross cash of EUR 9.0 billion and
net cash of EUR 6.5 billion compared to EUR 6.9 billion and EUR 2.1 billion, respectively, at the end of Q1 2014.
– In Q2 2014, Nokia completed the sale of substantially all of the Devices & Services business to Microsoft. Of the
approximately EUR 5.0 billion of net cash impact from the proceeds, approximately EUR 4.8 billion benefitted Q2
2014 with the balance expected to be received in the second half 2014. In connection with the completion of the
transaction the EUR 1.5 billion Microsoft convertible bonds were repaid.
– During Q2 2014 we started the capital structure optimization program with the redemption of approximately EUR
950 million of Nokia Networks debt. As a result of this, Nokia no longer has material financial covenants