- Main article: Nokia Corporation
- Chronicle of events: History of Nokia
- Acquisitions and sale of Nokia assets
2023:11% drop in revenue to €22.26 billion
In 2023, Finnish telecommunications equipment manufacturer Nokia received revenue of €22.26 billion. This is about 11% less than the result for the previous year, when sales reached €24.91 billion. The corresponding indicators are reflected in the financial report published on January 25, 2024.
Nokia notes that the reduction in revenue is due to changed business models of customers who faced difficulties in the context of the emerging macroeconomic situation and high inflation. The company's net annual profit was recorded at €679 million. For comparison: in 2022, Nokia earned €4.26 billion. Thus, the fall was at the level of 84%.
Nokia's network infrastructure solutions division received €8.04 billion in revenue in 2023 against €9.05 billion a year earlier. The segment of mobile networks also recorded a decrease in sales on an annualized basis: the figure decreased from €10.67 billion to €9.8 billion. In the direction of cloud and network services in 2023, revenue was shown in the amount of €3.22 billion, while a year earlier sales were estimated at €3.35 billion. In the Nokia Technologies group, which is responsible for licensing technologies and developing consumer electronics, sales fell from €1.6 billion to €1.09 billion.
From a geographical point of view, Nokia's revenue in the Asia-Pacific region in 2023 amounted to €2.29 billion (minus 13% year-on-year). The European region accounted for €5.87 billion (minus 12% compared to 2022), China - €1.3 billion (minus 18%). Sales in India, by contrast, jumped 120%, reaching €2.84 billion. Revenue in Latin America was recorded at €1.05 billion (minus 14%), in North America - €5.73 billion (minus 32%). In the Middle East and Africa, sales amounted to €2.05 billion (plus 4% year-on-year).[1]
2021: 12th in the world among ICT developers by revenue
According to Synergy Research Group, the total revenue of the 13 largest manufacturers of software and ICT services for business, including telecom operators, reached $613 billion in this market in 2021, which is 10% more than a year earlier. Nokia was ranked 12th on this list.
2020: Revenue cut by 6%, to €21.87 billion
Nokia's revenue in 2020 decreased by 6% to 21.87 billion euros. Sales fell in all divisions, but they fell the most in the structure responsible for the production and sale of telecommunications equipment: here the turnover sank by 7%, to 16.87 billion euros.
In the direction of Nokia Technologies, specializing in technology licensing and consumer electronics development, annual revenue decreased by 6%, to 1.4 billion euros. Nokia's software business decreased by 4% to 2.66 billion euros.
North America remains the largest market for Nokia. There, in 2020, the company earned 7.12 billion euros, which is 2% more than in 2019. In Europe, the region (in the second largest market for the company), revenue for the year remained practically unchanged at 6.62 billion euros.
In Asia-Pacific, turnover decreased by 16%, to 3.85 billion euros. In China, sales decreased even more - by 25%, to 1.38 billion euros, and in Latin America, the decline was measured by 31% on revenue of 1.01 billion euros.
Approximately 82% of Nokia's revenue (or almost 18 billion euros) at the end of 2020 fell on the supply of equipment and the provision of services to telecommunications companies. Another 8% of revenues (about 1.57 billion euros) were brought by corporate clients. The share of licensing revenue was 6% (just over 1.4 billion euros).
2020 turned out to be unprofitable for Nokia: the company's net losses reached 2.42 billion euros against a profit of 18 million euros a year earlier. The company attributed such large cash losses to a reduction in operating profit and the write-off of deferred tax assets in Finland.
Nokia's profit in the telecommunications division in 2020 increased by 45% compared to 2019 and amounted to 964 million euros. In the software business, profit decreased by 13%, to 511 million euros.[2]
2019
Revenue growth of 3% to €23.32 billion; profit - 18 million euros
In 2019, Nokia raised 23.32 billion euros, which is 3% more than a year earlier. Excluding currency fluctuations, sales from the Finnish telecommunications equipment manufacturer rose 1%. Nokia CEO Rajiv Suri called 2019 difficult.
Most of the company's turnover still falls on the sale of equipment for operator networks: the corresponding division in 2019 registered revenue of 18.21 billion euros, which is 5% higher than a year ago.
The volume of the software business increased by 2%, to 2.77 billion euros, and in the Nokia Technologies division, annual revenue was equal to 1.49 billion euros (-1% compared to 2018).
In 2019, Nokia's revenue in Europe reached €6.62 billion, up 2% year-on-year. In the Asia-Pacific region, sales jumped 12% to 4.56 billion euros. In the Chinese market, the company's revenues sank 15% to 1.84 billion euros at the end of 2019.
In Latin America, Nokia earned about 1.47 billion euros for the year against 1.38 billion euros a year earlier. In North America, revenue reached 6.95 billion euros, 6% higher than a year ago.
Net losses of 549 million euros, which were registered in 2018, in 2019 were replaced by net profit of 18 million euros.
Nokia Technologies is the most profitable division due to the fact that it requires small investments and earns mainly from licensing the technology. In 2019, profit here amounted to 1.24 billion euros against 1.2 billion euros a year earlier.
In the telecommunications equipment division, profit decreased by 14% to €665 million. The profit in the direction of Nokia Software rose by 31% - up to 589 million euros.[3]
First place in the telecommunications software and services market
Nokia September 21, 2020 reported that it again ranked first in market share among suppliers telecommunication software and services. The recently released annual report Analysys Mason reflects Nokia's progress in strengthening its software business.
According to Analysys Mason, in 2019, the global market for telecommunications software and services grew by 1%, to a level of 66.9 billion US dollars. Nokia's share in this market was about $4.5 billion.
Nokia Software's global business group products are built on the Common Software Foundation's cloud-based multi-network multi-vendor platform. Optimized for all leading public clouds, these products provide operators with operational flexibility.
Nokia is well positioned in such rapidly growing areas as virtualization, digital infrastructure, network orchestration and automation, artificial intelligence, machine learning and cognitive analysis.
Analysys Mason named Nokia a leading provider of telecommunications software (by market share) back in 2017. Nokia received the same high rating in the field of telecommunications software and services in the Analysys Mason report and next year, 2018.
 | In 2019, Nokia again ranked first in terms of market share in the telecommunications software and services segment. This success was achieved due to its high position in such fast-growing areas as network virtualization, as well as the fact that Nokia is among the leaders in almost all major categories of the telecommunications software business. Operators' software requirements are clearly leaning towards cloud products, and this fact also strengthens Nokia's position. |  |
| | Understanding customers and their requirements is the main factor determining the direction of development of Nokia Software products and services. That is why we devote so much time and effort to creating cloud applications on the Nokia Common Software Foundation platform. I am proud of the success of our employees and want to say on their behalf: we are very glad that customers continue to consider Nokia software the best and make investment choices in favor of Nokia solutions. | |
Stocks collapsed in ways they haven't since 1991
On October 24, 2019, Nokia shares fell in price by 24%, the strongest decline since 1991. The collapse of quotations occurred after the Finnish company worsened its forecast for annual profit and canceled the payment of dividends for the third and fourth quarters.
The telecommunications equipment manufacturer plans to end 2019 with a profit excluding one-time expenses and income at the level of €0.18-0.24 per share, while it previously expected €0.25-0.29.
Nokia expects a recovery in financial performance no earlier than 2021, which is a year later than the previously announced deadlines. One reason is the slow return on product investment for fifth generation (5G) networks.
| | A number of risks in the initial stage of 5G development, which we talked about earlier, are now becoming a reality. We expect to gradually resolve the situation over the next year, "said Nokia President and CEO Rajiv Suri on October 24, 2019. | |
According to him, the company faces such a problem as the high cost of 5G equipment, which, however, was expected, given that the technology had just begun to be implemented.
| | These costs tend to decrease significantly as production volumes increase and cost optimization continues to work, the head of Nokia added. | |
The company also listed its other issues by the third quarter of 2019:
- deterioration of margins due to changes in the product range;
- problems with the profitability of the business in China;
- price pressures in early 5G delivery deals;
- uncertainty in telecom in North America due to the merger of operators.
Rajiv Suri says Nokia will work to mitigate these problems in 2020, increase investment in 5G, reduce product costs and digitalize internal processes to improve productivity.[4]
2018
Among the largest IT companies in Europe
3% drop in revenue to €22.56 billion; losses - 549 million euros
In 2018, Nokia's revenue amounted to 22.56 billion euros, a decrease of 3% compared to the previous year. If we do not take into account fluctuations in exchange rates, then sales from the Finnish company increased by 1%.
The division responsible for the development and implementation of telecommunications equipment ended 2018 with a turnover of 20.12 billion euros, which is 2% less than a year ago.
In the structure of Nokia Technologies, which oversees the development of consumer gadgets and technology licensing, there was an annual revenue of 1.5 billion euros. This is 9% less than in 2017.
Revenue in the IP Networks and Applications segment (IP solutions for technology networks, data centers and transport) amounted to 5.72 billion euros, which is approximately the same as a year ago. In the field of telecommunications services, turnover was registered at 5.71 billion euros, which is 2% less than a year earlier.
Sales of equipment and software for mobile networks in 2018 decreased by 3%, to 6.71 billion euros. In the segment of solutions for fixed networks, sales decreased by 5%, to 1.98 billion euros.
Most of Nokia's telecommunications equipment is sold in North America. There, the revenue of Nokia Networks in 2018 reached 6.31 billion euros, rising 1% on an annualized basis.
In Europe, the company's telecommunications business decreased by 1% (to 4.4 billion euros), in China - by 13% (to 2.15 billion euros), in the Asia-Pacific region - by 3% (to 4.06 billion euros).
The Nokia Software department in 2018 received revenue of 1.57 billion euros, which is 1% more than in 2017.
Nokia's net losses in 2018 almost tripled, but still remained large - 549 million euros. The company has suffered losses for three years in a row.[5]
2017:57% loss rise to €1.46 billion
In 2017, Nokia's net losses increased by 57% to €1.46 billion from €927 million a year earlier. The Finnish company's revenue fell 2% to 23.1 billion euros.
Despite heavy cash losses and falling sales, Nokia CEO Rajeev Suri said he was pleased with these results and called them "strong." The head noted that the company recorded "growth in three out of five network divisions, as well as a very high rise in Nokia Technologies."
| | The group's profitability increased both at the end of the quarter and over the year. These indicators reflect the progress we have made since the third quarter thanks to our mobile products, as well as our good positions as part of the upcoming transition to fifth generation (5G) networks, "said Suri, whose words are quoted in the financial report. | |
The telecommunications division, which generates the most Nokia revenues, ended 2017 with revenues of 20.5 billion euros, which is 6% less than the result of 2016. Profit here decreased by 12% to 1.7 billion euros.
Nokia Technologies' technology licensing division generated revenue and profits of 1.6 and 1.1 billion euros in 2017, up 67% and 94% from a year ago, respectively.
Approximately 30% of revenue from Nokia's telecommunications division is in North America. The three most profitable regions for the company include Europe and the Asia-Pacific region. Separately, China brings the vendor about 11% of the turnover.
Annual revenue in Nokia's service business exceeded 5.8 billion euros, but decreased by 4% compared to 2016. Profit here increased by 1% and amounted to 411 million euros.
On the day of the publication of financial results, Nokia shares rose by 2.7% due to the fact that the company predicted a fall in telecom in 2018 not as much as it had previously predicted.[6]
2016: Net loss of €927 million
On February 2, 2017, Nokia released the results of its work in 2016. Losses to the Finnish company approached 1 billion euros due to weak sales of telecommunications equipment and large costs for joining Alcatel-Lucent.
In 2016, Nokia's net loss amounted to 927 million euros, while a year earlier there was a profit of 2.5 billion euros. In 2015, the company's revenue took into account sales of the mapping business for 2.8 billion euros to large German automakers.
In 2016, Nokia incurred heavy costs in connection with the acquisition for $15.6 billion of telecom equipment manufacturer Alcatel-Lucent, which has made annual profits only once since 2006. The rest of the years were unprofitable for the company.
Nokia CEO Rajeev Suri said he was "disappointed" with the results in 2016, but noted that this year was a turning point for the company.
| | We continue to expect improved revenues in 2017 and see potential in margin increases this year and beyond as the market improves and our transformation programmes deliver new results, "Suri said. | |
In 2016, Nokia's revenue reached 23.6 billion euros against 12.5 billion euros in 2015. This rise is caused only by accounting for Alcatel-Lucent revenues. Thanks to this transaction, the volume of telecommunications business (developed by Nokia Networks) increased by 90%, reaching 21.8 billion euros.
As you can see, most of Nokia's revenue comes from contracts in telecom. However, the company also sells licenses to use its patents. This business brought the vendor more than 1 billion euros in revenue in 2016, which is 3% more than a year ago.[7]
2015: €12.5 billion (+ 6%) revenue, 90% of telecom equipment sales
On February 11, 2016, Nokia published its annual financial report, from which it follows that the profit of the Finnish company has more than halved. The vendor also noted a drop in sales in Russia.
In January-December 2015, Nokia's net profit amounted to 1.2 billion euros against 2.7 billion euros recorded in the same period of the previous year. Revenue at the same time rose by 6% to 12.5 billion euros. Excluding fluctuations in currencies that play to the company's benefit, its annual sales fell 2%.
Nokia's profits have fallen sharply even as the technology licensing business, which runs a division of Nokia Technologies, has grown. Its operating profit, calculated not according to international financial reporting standards (IFRS), as well as revenue doubled in 2015 - to 720 million and 1 billion euros, respectively.
Nokia Technologies' revenue growth was largely helped by the patent agreement with. While Samsung its terms were not disclosed, the Finnish the company argued in early February 2016 that the arrangement doubled Nokia Technologies' annual revenue.
According to Nokia management forecasts, between 2016 and 2018, the company will be able to receive at least 1.3 billion euros in cash from licensing agreements similar to those concluded with Samsung.
The sale of telecommunications equipment, which generates more than 90% of Nokia's revenue, is a business with declining profits due to the company's active work in developing countries, where local operators prefer to purchase low-cost equipment. In 2015, the Nokia Networks division showed an 8 percent drop in profit on an annualized basis - to 1.26 billion euros. Revenue in it increased by 3% to 11.5 billion euros.
As Nokia CEO Rajeev Suri noted, in 2016 the company will face a number of market difficulties associated with a slowdown in the deployment of LTE networks in China and other emerging economies. The first quarter of 2016 "appears to be quite difficult" as customers analyse their spending plans amid economic uncertainty, Suri said.
The Nokia report also reported that in October-December 2015, the company's revenue in Europe fell by 7%, largely due to a decrease in sales in Russia and Italy. At the same time, in Ukraine, the vendor watched the growth of business. The report does not provide specific indicators of the activities of the Russian subsidiary Nokia.[8]
2011
9% drop in annual revenue to 38.66 billion euros, loss - 1.07 billion euros
In 2011, the company's global revenue decreased by 9% - from 42.45 billion euros to 38.66 billion euros. Net loss was €1.07 billion against operating profit of €2.07 billion in 2010.
In March 2012, Nokia published reports for 2011, in which it disclosed absolute sales figures in various regions. As follows from the document, 52% of Nokia's revenue in 2011 was brought by 10 countries, including Russia.
In Russia, the company earned 1.84 billion euros for the year, which is about 5.7% more than in 2010. At the same time, the growth rate of revenue slowed down: in 2010 they amounted to 14%. The share of Russia in total Nokia sales has also grown slightly - from 4.1% to 4.7%.
Among the dozen countries that brought Nokia the most revenue, Russia ranked fourth for the second year in a row. In 2009, she took the sixth position. At the same time, of these dozens, only in Russia, Brazil and Japan, the company's sales in 2011 showed positive dynamics - in other countries they decreased.
Nokia earned the most in 2011 China - 6.13 billion euros. At the same time, the fall in sales in this country amounted to 14.2%. At an even higher rate, the company's revenue fell Great Britain in and. Italy But in Japan, it showed the highest growth among the Top 10 most profitable countries - sales there increased by 110%. Nokia's revenue growth rate in this country was similar in 2010.
I half of the year: loss of 261 million euros, collapse of capitalization
Financial indicators (first half of 2011): revenue - 19.7 billion euros, net loss - 261 million euros.
- Capitalization as of February 11, 2011 - $34.7 billion.
- Capitalization for July 2011 - 15 billion euros.
- In the world market smartphones Nokia in the second quarter of 2011, 16.7 million smartphones were sold, and Apple - 3.64 million more. In the world market of mobile devices (phones and) smartphones in the first quarter, Nokia's share decreased to 25.1% - by 5.5 pp compared to the same period in 2010 (in pieces, data). Gartner
- According to the results of the first quarter of 2011, the company's share in the global mobile phone market for the first time in more than 10 years fell below 30%. For the first time, Nokia lost revenue to Apple, and its capitalization was lower than HTC, which is not even in the top five manufacturers.
2010: Revenue growth to €42.45 billion, net profit to €1.33 billion
In 2010, Nokia remained the largest manufacturer of mobile phones, but its share steadily decreased. According to IDC, in 2010 the company occupied 32.6% of the global market, compared to 36.9% a year earlier.
Sales of the world's largest mobile phone maker, Nokia, rose 4% to 42.45 billion euros in 2010. Operating profit rose 73% to 2.1 billion euros. Net profit - 1.33 billion euros.
The revenue of the Devices & Services division grew by 5% to 29.13 billion euros, Navteq - by 50% to 1 billion euros, Nokia Siemens Networks - by 1% to 12.66 billion euros. Devices & Services' operating profit fell half a percent to €3.30 billion, Navteq's operating losses shrank from €344 million to €255 million, Nokia Siemens Networks' operating losses were €686 million against €1.64 billion a year earlier.
According to Nokia, in 2010, shipments of mobile phones of all brands to the global market increased by 13% to 1.43 billion units. At the same time, Nokia shipments increased only 5% to 452.9 million units (regular phone shipments decreased by 3%, while smartphone shipments increased by 48%). As a result, the company's share decreased to 32% against 34% in 2009.
Sales in the fourth quarter of 2010 increased by 6% to 12.65 billion euros, while operating profit showed negative dynamics, decreasing by 23% to 884 million euros against 1.14 billion euros a year earlier.
In the IV quarter, the vendor delivered 95.4 million simple devices and 28.3 million smartphones to the global market. Compared to the same period in 2009, shipments of the former decreased by 10%, while smartphones increased by 36%. In total, the reduction in supplies at the end of the three-month period amounted to 3%. Compared to last year, Nokia's share in the smartphone segment decreased from 40% to 31%.
Shipments of Nokia mobile phones (all types, including smartphones) declined in Q4 2010 in all regions except China. The largest decline was in North America - minus 32%. Supplies to Europe decreased by 2%, to the Middle East and Africa - by 9%. Shipments to China rose 24%.
At the end of 2010, Nokia employed approximately 132,000 people.
2008: Revenue - €50.7 billion, profit - €3.9 billion
Revenue - €50.7 billion, operating profit - €4.9 billion, net profit - €3.9 billion.
Notes
- ↑ Nokia Corporation Financial Report for Q4 and full year 2023
- ↑ Report for Q4 and Full Year 2020
- ↑ Report for Q4 and Full Year 2019
- ↑ Nokia shares drop the most since 1991 after cutting outlook, suspending dividend
- ↑ Report for Q4 and Full Year 2018
- ↑ Report for Q4 and Full Year 2017
- ↑ Report for Q4 and Full Year 2016
- ↑ Report for Q4 and Full Year 2015
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