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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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