Nokia Networks today said its Q2 2015 revenue rose 6 percent to 2,730 million euros or $2,996 million.
The growth was driven by an elevated level of software sales within Mobile Broadband and strong performance across Global Services.
Nokia Networks generated 1,391 million euros (+3 percent) from mobile broadband and 1,337 million euros (+12 percent) from global services.
“We saw a reduced impact of strategic entry deals; Global Services had one of its best quarters in the history of the company; and costs remained well under control,” said Rajeev Suri, president and CEO or Nokia.
“While we expect the telecom infrastructure market to remain challenging, I believe that our disciplined operating model and strong execution capabilities will continue to differentiate us in this environment. Additionally, we remain highly focused on reducing costs and improving efficiency in order to mitigate the impact of market conditions,” Suri added.
Mobile Broadband represented 51 percent of Nokia Networks net sales, compared to 53 percent in the second quarter 2014 and 52 percent in the first quarter 2015.
Global Services represented 49 percent of Nokia Networks net sales, compared to 46 percent in the second quarter 2014 and 48 percent in the first quarter 2015.
Global Services net sales increased 12 percent year-on-year in the second quarter 2015, primarily due to growth in the network implementation, care, network planning and optimization and, to a lesser extent, the systems integration business lines.
The network planning and optimization and systems integration business lines delivered particularly strong percentage growth on a year-on-year basis, consistent with our ongoing focus on services-led and professional services business.
Mobile Broadband net sales increased 3 percent year-on-year in the second quarter 2015, primarily due to growth in overall radio technologies, with particular strength in LTE.
Sale of Nokia increased 9 percent to 3209 million euros in Q2 2015. Out of this, 2730 million euros (+6 percent) came from Nokia Networks, 290 million euros (+25 percent) from HERE and 193 million euros (+31 percent) from Nokia Technologies.
Nokia Networks is expecting 8-11 percent increase in sales this year.
Baburajan K
editor@telecomlead.com
