Nokia Corporation has announced a slow start to 2024, with net sales declining by 19% year-on-year in constant currency (20% reported) in the first quarter. The company attributes the decline to ongoing market weakness. However, Nokia remains optimistic about the future, citing continued improvement in order intake as a positive sign for a stronger second half and achieving its full-year outlook.
Despite the challenging environment, Nokia’s Network Infrastructure division has shown promising order trends and year-on-year growth. The company believes that the outlook for Fixed Networks in 2024 has improved, suggesting a potential market recovery. However, Nokia predicts a longer recovery period for Optical Networks. With the ongoing strength in order intake, Nokia anticipates that Network Infrastructure will return to net sales growth for the full year, with a stronger performance in the second half.
On the other hand, Nokia’s Mobile Networks division experienced a significant decline in net sales due to low levels of spending in North America and India. The company expected a slower pace of spending in India following the rapid deployment of 5G in the first half of 2023. Globally, Nokia anticipates that Q1 will mark the lowest point in demand and expects activity to gradually pick up throughout the remainder of 2024.
Cloud and Network Services also faced a challenging start to the year, primarily due to the difficult spending environment. However, Nokia reports improving order intake and pipeline momentum in this division, and highlights progress on its Network as Code platform, which allows operators to monetize their 5G investments.
Nokia Technologies had a strong start to the year, benefiting from licensing deals and catch-up net sales. The company aims to focus its resources on expanding in new growth areas and increasing its annual licensing net sales run-rate in the mid-term.
Overall, while Nokia acknowledges the current market challenges, the company remains hopeful for a stronger second half of 2024 and is confident in achieving its full-year outlook. Investors are advised to review the complete financial reports for a more detailed analysis.
The decline in Nokia Corporation’s net sales in the first quarter of 2024 is a reflection of the ongoing market weakness in the industry. Despite this, the company is optimistic about the future and expects a stronger second half of the year.
Nokia’s Network Infrastructure division, which includes Fixed Networks and Optical Networks, has shown promising order trends and year-on-year growth. This suggests a potential market recovery, particularly in Fixed Networks. However, Nokia predicts a longer recovery period for Optical Networks.
Nokia’s Mobile Networks division, on the other hand, experienced a significant decline in net sales. This was primarily due to low levels of spending in North America and India. In India, the company expected a slower pace of spending following the rapid deployment of 5G in the first half of 2023. Nokia anticipates that Q1 will mark the lowest point in demand globally and expects activity to gradually pick up throughout the remainder of 2024.
Cloud and Network Services also faced challenges in the first quarter, largely due to the difficult spending environment. However, Nokia reports improving order intake and pipeline momentum in this division. The company highlights progress on its Network as Code platform, which allows operators to monetize their 5G investments.
Nokia Technologies, which focuses on licensing deals and intellectual property, had a strong start to the year. The company aims to expand in new growth areas and increase its annual licensing net sales run-rate in the mid-term.
Overall, Nokia remains hopeful for a stronger second half of 2024 and is confident in achieving its full-year outlook. The company acknowledges the current market challenges but believes in the potential for recovery and growth in various divisions. Investors are advised to review the complete financial reports for a more detailed analysis.
For more information about Nokia Corporation and its performance in the industry, you can visit the Nokia website.
The source of the article is from the blog tvbzorg.com