Nokia Corporation published this morning the financial results for the third quarter of 2017. The results show worse performance of Nokia’s core Networks unit compared year on year or quarter on quarter, with a negative outlook for the mobile networks market in 2018. Other Nokia units, Ultra Broadband Networks, Global Services and IP Networks & Applictions, posted mixed results, with lower revenue, but increased profitability. Nokia Technologies had a great quarter, with over 70% increase in profits year on year. Details follow down below.
For Q3 2017, Nokia posted €5.537 billion in net-sales (non-IFRS), with a profit of €516 million (non-IFRS). Non-IFRS results don’t include various business costs, like in Nokia’s case it’s mainly the Alcatel-Lucent integration costs that took €497 million of the €898 million non-IFRS exclusion in operating profit for Q3 2017. Following the IFRS standard of reporting, on €5.5 billion, Nokia posted a net loss of €190 million. Check the details of the report in the tables down below.
The most interesting unit for us is definitely Nokia Technologies. The Technologies unit posted great results for Q3 2017. The unit posted €483 million in net sales, 37% up from last year; with €390 million in operating profit or 73% more than year before.
From the €483 million in net sales, €474 million is related to patent and brand licensing, and €9 million is related to digital health and media, or OZO and Withings.
The jump in sales in Technologies was mainly caused by a €180 million non-recurring catch-up net sales, mostly related to the LG arbitration finished recently. New licensing agreement and partnership with HMD also caused a rise of net sales. Nokia noted that they received lower licensing income from certain existing licensees.
The stock market reacted negatively and Nokia’s stock price at Helsinki Stock Exchange is down about 15% since the market opened. Positive News for investors is that the planned dividend for 2017 is €0.19, compared to €0.17 in 2016.