Nokia Reports Strong Profits, Shares Fall on Lower Dividend

Nokia's fourth-quarter profits soared, driven by a 95pc surge in sales in the US and Canada, primarily due to increased business from operators T-Mobile US and Sprint. The Finnish company's networks unit was the standout performer, with income rising to €470m from €397m the previous year. However, the shares fell as the company increased its dividend by less than analysts had predicted, and the proposed payout of €0.14 a share was lower than forecast.

Key Takeaways:

• Nokia's fourth-quarter net income rose to €443m, from a loss of €26m a year earlier, with sales increasing 9.4pc to €3.8bn.
• The networks unit was the star performer, with income rising to €470m, a 95pc surge from the previous year, driven by increased business from T-Mobile US and Sprint.
• Analysts had expected a profit of €415m from the networks unit, indicating the results exceeded expectations.
• The technologies unit, which contains Nokia's patents, brand licensing, and new product design businesses, reported an operating profit of €77m, which was lower than forecasts.
• Chief executive Rajeev Suri noted that the company is focused on growth and execution, following years of restructuring.
• The proposed dividend of €0.14 a share was lower than forecast, causing the shares to fall 3.8pc at €6.87.

Statistics:

• Fourth-quarter net income: €443m (up from a loss of €26m)
• Sales: €3.8bn (up 9.4pc)
• Networks unit income: €470m (up 95pc from €397m)
• Analysts' expected profit from networks unit: €415m
• Technologies unit operating profit: €77m (lower than forecasts)

Sources:

• "Nokia reports Q4 profit of eur 443m, increases dividend by 3%". Financial Times.
• "Nokia posts higher profit, but shares fall on dividend cut". Reuters.