Nokia provides recast comparative quarterly financial information reflecting the presentation of Submarine Networks business as discontinued operation

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Nokia Oyj

Nokia Corporation
Stock Exchange Release
30 September 2024 at 23:00 EEST

Nokia provides recast comparative quarterly financial information reflecting the presentation of Submarine Networks business as discontinued operation

Nokia today provides recast comparative financial information for Nokia Group and Network Infrastructure segment for Q1 2024 and Q1-Q4 2023 reflecting the presentation of Submarine Networks business as discontinued operation.

Presentation of Submarine Networks business as discontinued operation

On 27 June 2024, Nokia announced it had entered into a put option agreement to sell Alcatel Submarine Networks (ASN) to the French State, represented by the Agence des participations de l'Etat (APE), subject to informing and consulting with the relevant employee representatives at ASN and Nokia along with other customary closing conditions and regulatory approvals. The put option agreement contemplates the sale of ASN for an enterprise value of EUR 350 million, while the final proceeds will depend on the working capital and net debt balances of ASN at closing. Upon entering into the agreement Nokia classified the assets and liabilities of ASN as held for sale and recorded an impairment loss of EUR 514 million on the measurement of ASN's net assets to fair value less costs to sell. Beginning from the second quarter of 2024 the Submarine Networks business, which was previously reported as part of Network Infrastructure operating segment, is presented as discontinued operation. The sale is expected to close at the end of 2024 or beginning of 2025.

To provide a basis for comparison, the following tables present summarized income statement information for Nokia Group and Network Infrastructure segment on an unaudited basis for all quarters and the full year of 2023, as well as for the first two quarters and first half of 2024, reflecting the presentation of Submarine Networks business as discontinued operation.

Nokia Group

 

Reported

 

 

EUR million

Q1'24

Q2'24

Q1-Q2'24

 

 

Net sales

4 444

4 466

8 910

 

 

Gross profit

2 210

1 936

4 146

 

 

Operating profit

405

432

836

 

 

Profit from continuing operations

451

370

821

 

 

Loss from discontinued operations

(13)

(512)

(525)

 

 

Profit/(loss) for the period

438

(142)

296

 

 

 

 

 

 

 

 

 

Reported

EUR million

Q1'23

Q2'23

Q3'23

Q4'23

Q1-Q4'23

Net sales

5 575

5 438

4 709

5 416

21 138

Gross profit

2 161

2 148

1 892

2 345

8 546

Operating profit

421

469

237

534

1 661

Profit/(loss) from continuing operations

283

287

130

(51)

649

Profit from discontinued operations

7

2

3

18

30

Profit/(loss) for the period

289

289

133

(33)

679


 

Comparable

 

 

EUR million

Q1'24

Q2'24

Q1-Q2'24

 

 

Net sales

4 444

4 466

8 910

 

 

Gross profit

2 246

1 998

4 244

 

 

Operating profit

600

423

1 023

 

 

Profit from continuing operations

512

328

840

 

 

Profit for the period

512

328

840

 

 

 

 

 

 

 

 

 

Comparable

EUR million

Q1'23

Q2'23

Q3'23

Q4'23

Q1-Q4'23

Net sales

5 575

5 438

4 709

5 416

21 138

Gross profit

2 172

2 184

1 921

2 421

8 698

Operating profit

471

619

418

830

2 337

Profit from continuing operations

332

409

293

555

1 590

Profit for the period

332

409

293

555

1 590

Network Infrastructure

EUR million

Q1'24

Q2'24

Q1-Q2'24

 

 

Net sales

1 439

1 522

2 961

 

 

Gross profit

587

585

1 172

 

 

Gross margin %

40.8%

38.4%

39.6%

 

 

Research and development expenses

(301)

(300)

(602)

 

 

Selling, general and administrative expenses

(204)

(207)

(410)

 

 

Other operating income and expenses

3

19

22

 

 

Operating profit

85

97

183

 

 

Operating margin %

5.9%

6.4%

6.2%

 

 

Share of results of associated companies and joint ventures

 

 

Depreciation and amortization

(43)

(41)

(84)

 

 

 

 

 

 

 

 

EUR million

Q1'23

Q2'23

Q3'23

Q4'23

Q1-Q4'23

Net sales

1 964

1 706

1 534

1 712

6 917

Gross profit

820

702

622

765

2 910

Gross margin %

41.8%

41.1%

40.5%

44.7%

42.1%

Research and development expenses

(306)

(285)

(297)

(323)

(1 212)

Selling, general and administrative expenses

(196)

(193)

(191)

(195)

(776)

Other operating income and expenses

18

28

30

17

94

Operating profit

336

252

165

264

1 016

Operating margin %

17.1%

14.8%

10.8%

15.4%

14.7%

Share of results of associated companies and joint ventures

Depreciation and amortization

(42)

(42)

(41)

(45)

(171)

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