Nokia Networks today said its Q4 2014 revenue rose 8 percent to EUR 3.4 billion to $3.8 billion — primarily due to strong performance in North America.
Incidentally, for Ericsson, main rival of Nokia Networks, North American telecom markets are posing huge challenges.
Mobile Broadband of Nokia Networks rose 13 percent — driven by strong growth in core networking technologies and modest growth in radio technologies. Within radio technologies, strong growth in LTE was partially offset by a decline in mature radio technologies.
Global Services rose 3 percent and particularly strong growth in the strategically important systems integration business line.
Nokia CEO Rajeev Suri said: “Profitability was excellent in Nokia Networks, and we were particularly pleased with our net sales growth in North America and core networks. Looking ahead, while 2014 was a year of reinvention, we see 2015 as a year of execution. We are already moving fast, with Nokia Networks increasing its momentum in growth areas including virtualization and telecom cloud.”
Nokia expects Nokia Networks’ net sales and operating margin in the first quarter 2015 to decline seasonally compared to the fourth quarter 2014.
Nokia Networks revenue Mobile Broadband rose 13 percent to 1,760 million euros, while Global Services sales grew 3 percent to 1,579 million euros.
Regional performance
Nokia Networks sales in North America increased 95 percent primarily due to LTE network deployments at major customers.
In Europe, sales increased 4 percent primarily due to higher network deployments in Southern and Eastern Europe.
In Middle East and Africa, sales increased 4 percent primarily due to higher network deployments.
In Asia Pacific, sales increased 1 percent primarily due to higher network deployments in Vietnam, Myanmar and India, partially offset by lower network deployments in Japan.
In Greater China, sales decreased 3 percent primarily driven by lower TD-LTE network deployments.
In Latin America, sales decreased 9 percent primarily due to lower managed services activity in Brazil partially offset by higher network deployments in Colombia.
Compared to the third quarter 2014, Nokia Networks net sales in Asia Pacific increased 17 percent primarily due to higher network deployments in Indonesia, Vietnam, Japan and Myanmar, partially offset by lower network deployments in India.
Baburajan K
editor@telecomlead.com
