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Nokia Net Sales, Operating Profits and Operating Margin Up in Q3 2010 (Stock up 6.8%)

| October 21, 2010 | 12 Replies

Nokia has reported a strong unexpected third quarter. It was expected to have been worse than Q2 as no major handset has been released. This is what Nokia can do without anything compelling at the mid-high end. Nokia has weathered the toughest transition stages. The mid-high range N8/C7/E7 and mid-low C6 should make things even better. Then we will see the new Symbian Qt based Symbian and the MeeGo onslaught at the high end next year.

Some highlights.

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  • Q3 2010 Operating profits increased to 403 Million EUR, (Q3 2009, Loss 426 M; Q2 2010 profit 295M).
  • Q3 2010 Operating margin 3.9% (-4.3% Q3 2009; 2.9% Q2 2010)
  • Q3 2010 83 .9M “dumbphones”, 26.5 smartphones (Q3 2009, 92.1M Dumbphones, 16.4M Smartphones; Q2 2010, 87.1M Dumbphones 24M Smartphones). That’s more people gradually making the switch to Nokia Smartphones.
  • Nokia net sales of EUR 10.3 billion, up 5% year-on-year and 3% sequentially (down 2% and up 1% at constant currency).
  • Devices & Services net sales of EUR 7.2 billion, up 4% year-on-year and 6% sequentially (down 5% and up 2% at constant currency).
  • Services net sales of EUR 159 million, up 7% year-on-year and 1% sequentially; billings of EUR 325 million, up 89% year-on-year and 10% sequentially.
  • Nokia total mobile device volumes of 110.4 million units, up 2% year-on-year and down 1% sequentially.
  • Nokia converged mobile device (smartphone and mobile computer) volumes of 26.5 million units, up 61% year-on-year and 10% sequentially.
  • Nokia mobile device ASP (including services revenue) of EUR 65, up from EUR 64 in Q3 2009 and EUR 61 in Q2 2010.
  • Devices & Services gross margin of 29.0%, down from 30.9% in Q3 2009 and 30.2% in Q2 2010.
  • Devices & Services non-IFRS operating margin of 10.5%, down from 11.4% in Q3 2009 and up from 9.5% in Q2 2010.
  • NAVTEQ non-IFRS net sales of EUR 252 million, up 52% year-on-year and flat sequentially (up 47% and down 2% at constant currency).
  • Nokia Siemens Networks net sales of EUR 2.9 billion, up 7% year-on-year and down 3% sequentially (flat and down 4% at constant currency).
  • Nokia Siemens Networks non-IFRS operating margin of -3.9%, down from -1.9% in Q3 2009 and 1.7% in Q2 2010.
  • Nokia operating cash flow of EUR 439 million, and cash generated from operations EUR 1 206 million.
  • Total cash and other liquid assets of EUR 10.2 billion and net cash and other liquid assets of EUR 4.4 billion, at the end of Q3 2010.
  • Nokia taxes continued to be unfavorably impacted by Nokia Siemens Networks taxes as no tax benefits are recognized for certain Nokia Siemens Networks deferred tax items. In Q3 2010, this was more than offset by lower Devices & Services taxes due to dividend withholding tax legislation changes in certain jurisdictions with a one-quarter impact. If Nokia’s estimated long-term tax rate of 26% had been applied, non-IFRS Nokia EPS would have been approximately 1.5 Euro cents lower.
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Category: Nokia

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Hey, thanks for reading my post. My name is Jay and I'm a medical student at the University of Manchester. When I can, I blog here at mynokiablog.com and tweet now and again @jaymontano. We also have a twitter and facebook accounts @mynokiablog and  Facebook.com/mynokiablog. Check out the tips, guides and rules for commenting >>click<< Contact us at tips(@)mynokiablog.com or email me directly on jay[at]mynokiablog.com
  • Simone

    It’s a GREAT DAY for those of us who have always remained faithful to our SUPER SYMBIAN OS! Haters Gonna Hate but Nokia gonna innovate!

  • IKIRK

    Not sure what sales figures were but didn’t Nokia release the N900 in large phone markets such as India and Brazil in this quarter? Maybe that helped?

  • Nokia fan

    Probably the pre-orders of the N8 helped, since it has the most pre-orders ever.

    • Don

      Are you sure they counted? I don’t think they do.

      Which makes it all the better, of course :)

      • alex68

        Did not read earning report yet.

        Don’t think so unless Nokia would put preorders as receivable. Does anyone check if Nokia has a high receivable number?

  • mja

    They got great Q3 results with utter crap smartphones so Q4 results should be awesome :)

  • Jim

    actually I was expected to have very low earnings on Q3 . now that I see the results I can only think how great results will have nokia on Q4

  • raz0rz

    Nokia’s marketshare has dropped to 30% from 34%. Things are not looking good. :(

    • alex68

      But think this way that Nokia has managed quite well even with S60V5 phones, without any new products from Symbian 3. It is a rather excellent earning report in my eyes!

    • Roger

      raz0rz, you are misunderstanding the situation, trust me.

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