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