Nokia Networks revenue drops 6% to $5.3 bn in Q1

Nokia said its Networks business revenue was €4.9 billion or $5.3 billion (–6 percent) in the first quarter of 2017.

The drop in the first quarter revenue of Nokia Networks was primarily due to IP/Optical Networks and Fixed Networks, with approximately flat net sales in Mobile Networks and Applications & Analytics.

Nokia has generated €3,597 million (–4 percent) revenue from its Ultra Broadband Networks business and €1,304 million (–10 percent) from IP Networks and Applications business.
The Finland-based company said Nokia Networks business has achieved gross margin of 39.5 percent and operating margin of 6.6 percent, supported by focus on operational excellence, with strong performance in mobile networks.

Nokia’s total sale was €5,388 million (–4 percent) that includes €247 million (+25 percent) from Nokia Technologies.

Nokia said it is expecting decline in sales and operating margin for Nokia’s Networks business in 2017 due to the following reasons.

# A low single digit percentage decline in the primary addressable market for Nokia’s Networks business

# Competitive industry dynamics

# Product and regional mix

# Timing of major network deployments

# Execution of cost savings and reinvestment plans

Rajeev Suri on Nokia Networks

Nokia CEO Rajeev Suri said: “The power of our end-to-end portfolio was evident in our first quarter results. We saw encouraging stabilization in Mobile Networks topline, our strategy to build a strong software business gained momentum in Applications & Analytics, and Nokia Technologies saw significant year-on-year improvement in sales.”