Nokia announced this morning the financial results for the second quarter of 2020 and the first half of 2020. The report shows that COVID-19 pandemic and unique situation in China had an impact on Nokia’s net sales, but the company posted a profit in Q2 2020 regardless.
The COVID-19 pandemic costed Nokia around 300 million euro in net sales during Q2 2020, which makes around 500 million euro for the first half of 2020. Nokia expects to get this missed revenue in the future when the operator market starts investing more again.
In Q2 2020, the company posted 5.092 billion euro in net sales, which is 11% less than in the same period last year. The revenue decline happened across all Nokia business units, including Networks, Software and Nokia Technologies. The operating profit was a positive 170 million euro compared to a loss of 57 million euro in the same period last year.
Nokia emphasised solid cash performance, with company’s net cash rising to 1.6 billion euro and total cash to 7.5 billion euro, mainly thanks to a 1 billion euro loan Nokia took, which will be needed in these uncertain times.
This is also the last time Rajeev Suri delivered the earnings report, considering he will be succeeded by Pekka Lundmark starting 1st August 2020.