Nokia beats forecasts and reports a profitable second quarter

30 Jul 201514 Shares

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Telecoms equipment giant Nokia surprised analysts with greater than expected profits.

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Telecoms equipment maker Nokia, which is in the process of acquiring Alcatel-Lucent for €15.6bn, has beaten analyst estimates by reporting a Q2 net profit of €347m, well ahead of analyst predictions of €209m.

Nokia reported Q2 revenues of €3.2bn, up from €2.9bn a year ago, while operating profits were €508m, up from €284m last year.

The stronger-than-expected performance saw shares rise 8pc in Thursday morning trading.

The Finnish technology player’s Networks division reported sales of €2.7bn, up from €2.5bn.

The HERE mapping division reported sales of €290m, up from €232m, while Nokia Technologies, its IP licensing division, reported revenues of €193m, up from €147m last year.

Nokia is understood to be close to a deal to sell the HERE mapping division to German carmakers Audi, BMW and Daimler for between €2.5bn and €3bn.

Nokia is also making strides in clearing regulatory hurdles to acquire Alcatel-Lucent for €15.6bn.

Nokia last year realised a €3.5bn windfall on the sale of its handset manufacturing division to Microsoft for €8.5bn.

Microsoft has since recorded a €7.6bn impairment charge due to the Nokia devices acquisition and has let go of 7,800 staff in its smartphone division.

Nokia image via Shutterstock

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Editor John Kennedy is an award-winning technology journalist.

editorial@siliconrepublic.com