Nokia has recently posted new data for its financial performance during Q2 2022, showing some solid numbers in the quarter. More specifically, the Finnish tech giant reported revenue of 460 million Euros in profits, and 5.87 billion Euros in net sales.
An official press statement from the company included a summary of Nokia’s Financial Report for Q2 and Half year 2022. This includes the following:
- Q2 net sales increased 3% y-o-y in constant currency (+11% reported).
- Network Infrastructure net sales grew 12% in constant currency, with growth across all four businesses while Mobile Networks returned to growth despite ongoing supply chain constraints.
- Cloud and Network Services net sales were flat in constant currency while Nokia Technologies declined 25% as it continued to be impacted by expired licenses that are in the process of being renewed.
- Comparable gross margin of 40.6% and operating margin of 12.2%. Underlying profitability improved but was offset by Nokia Technologies and a one-off software deal in Mobile Networks in the prior year meaning margins declined y-o-y.
- Reported gross margin declined 80bps y-o-y to 40.2% and operating margin expanded 50bps y-o-y to 9.6% as the above factors impacting comparable margins were offset primarily by lower restructuring charges.
- Comparable diluted EPS of EUR 0.10; reported diluted EPS of EUR 0.08.
- Free cash flow negative EUR 0.1bn, net cash balance of EUR 4.5bn.
- Solid first half performance with 2% constant currency net sales growth and comparable operating margin of 11.6% (reported 8.2%), down slightly as timing effects in Nokia Technologies offset underlying profitability improvements.
- Full year 2022 net sales outlook is unchanged in constant currency. Full year net sales outlook applying 30 June 2022 exchange rates is EUR 23.5bn to EUR 24.7bn. Comparable operating margin guidance remains 11% to 13.5%.
Nokia President and CEO Pekka Lundmark stated that in addition to the company’s solid second quarter, Nokia saw continued demand for connectivity, particularly with 5G and fiber. He also commented that the company (also known for the development of 5G technologies) saw record-breaking 5G speeds in both the United States and Finland.
A while back, the company also took legal victories over BBK Electronics subsidiary Oppo. This involves disputed patents pertaining to 4G (LTE) and 5G Standard Essential Patents (SEPs), with Nokia suing OPPO over nine SEPs and five implementation patents across three German regional courts including Munich and Düsseldorf.