Nokia beats forecasts and reports a profitable second quarter

30 Jul 2015407 Views

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

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

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on RedditEmail this to someone

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.

Support Silicon Republic

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

John Kennedy is an award-winning technology journalist who served as editor of Siliconrepublic.com for 17 years.

editorial@siliconrepublic.com