Nokia reports profitable Q4 and whole year 2013
In preparation for the fourth quarter results from Nokia, the company released some of its old reports in a new format (adjusting for the fact that a huge chunk of the company moving to Microsoft). Today the real deal came out and the results are in the black.
Net sales for the whole company in the final quarter of 2013 were €3.476 billion, down 21% year on year. The operating profit was €274 million, down 17%. For the full year 2013, Nokia's continuing operations raked in €12.709 billion, down 17% compared to the full 2012.
Still, the three ongoing divisions report positive profits. Nokia Solutions and Networks (NSN) reports €3.105 billion net sales and €243 million in operating profit. Better still, for the full year 2013 NSN posted €420 million in operating profit, compared to a €795 million operating loss in 2012.
This division reports decreased demand for GSM and core network tech, offset by increased LTE sales in Greater China, Europe and Asia-Pacific (excluding Japan). NSN scored contracts for LTE deployment with Sprint in the US, China Mobile, China Telecommunications Corporation and Taiwan's first LTE deployment for Chunghwa Telecom.
HERE, Nokia's mapping division, earned €254 million in net sales and €18 million in operating profit. HERE sold 3.2 million licenses to vehicles, up from 2.4 million in Q4 '12 when the division posted a loss of €56 million. Vehicle licenses make up for over half of HERE's net sales (rather than phone navigation software). Anyway, the end result for the full year was still €154 million in the red (an improvement over the €301 million operating loss in 2012).
Advanced Technologies (Nokia's research division) made €65 million in operating profit on €121 million net sales. For the full year, the division made €310 in operating profit, down 5% compared to 2012. The patent licensing deal with Samsung has been extended by 5 years. Payments start from January 1 this year, though the exact payment amount will be determined next year.
Discontinued operations (that's the phones business) made €2.633 billion in net sales (down 29% year on year) and posted an operating loss of €198 million (from a small profit in Q4 '12 and smaller loss in Q3 '13). The loss for the full year is €590, about a third of the €1.479 billion loss in 2012.
The discontinued phone business saw a decline in feature phone sales and a smaller decrease in smartphone sales. Volumes for both types of devices declined and in the fourth quarter Nokia sold only 8.2 million Lumia devices (down from 8.8 million in Q3), despite numerous aggressive price cuts to the popular Lumia 520.