Nokia’s Networks business revenue fell 14 percent in Q4 2016, reflecting challenging market conditions in the fourth quarter of last year.
The drop is significant because Nokia acquired Alcatel-Lucent to improve revenue growth from telecom networks and enterprise business.
Gross margin of Nokia’s Networks business was 40.6 percent and operating margin was 14.1 percent, supported by focus on operational excellence and cost controls.
Nokia’s Networks business achieved operating margin of 8.9 percent in 2016.
In Q4 2016, Nokia Networks sale was €6,069 million (–14 percent) with €4,332 million (–15 percent) from Ultra Broadband Networks and €1,737 million (–12 percent) from IP Networks and Applications.
The revenue of Nokia Networks in 2016 was €21,799 million thanks to the acquisition of Alcatel-Lucent. The standalone revenue of Nokia Networks in 2015 was €11,486 million.
At the start of the year, Nokia was focused primarily on mobile networks. Nokia ended the year as a company with a complete portfolio spanning mobile, fixed, routing, optical, stand-alone software and more.
“Nokia has opportunities to drive higher returns through expansion into new customer segments; with emerging businesses in digital health and digital media; and with expanded patent and brand licensing activities,” said Nokia CEO Rajeev Suri.
