Nokia reported Q2 net sales of EUR 5,873 billion, up 11% year over year in absolute terms and up 3% yoy when accounting for constant currency. Gross margin was 40.2%. EPS was 0.08.
Some highlights:
- Network Infrastructure net sales grew 12% in constant currency, with growth across all four businesses.
- Mobile Networks returned to growth despite ongoing supply chain constraints.
- Cloud and Network Services net sales were flat in constant currency.
- Nokia Technologies declined 25% as it continued to be impacted by expired licenses that are in the process of being renewed.
Pekka Lundmark, Nokia's president and CEO, states: "While we recognize the increased global macroeconomic uncertainty and currency fluctuations impacting some emerging markets, I am confident we have the right strategy in place to navigate these challenges along with support from structural technology adoption trends in 5G and fiber. However, we will not become complacent; we remain focused on building technology leadership and improving cost-efficiency to deliver on our strategic goals for the years ahead."
"We have had a strong first half and with our renewed competitiveness, we are well placed to deliver our full year 2022 guidance. There remain risks around timing of Nokia Technologies’ contract renewals, potential COVID-19 lockdowns and the supply chain which remains challenging but is showing signs of improvement. We are currently tracking towards the higher-end of our net sales guidance and towards the mid-point of our operating margin guidance as we manage ongoing inflation and currency headwinds."
