Nokia Q2 Loses Narrow but Revenue Plunges

Nokia Q2 Loss Narrows but Revenue Plunges

July 18, 2013
Traditional mobile phones sales dropped 39% from last year, while smartphone sales were down 24%.

HELSINKI -- Nokia  (IW 1000/61) on Thursday reported a reduced loss of 227 million euros (US$298 million) in the second quarter, but sales again fell sharply.

The loss was 84% less than in the same period last year, but revenue fell by 24% to 5.695 billion euros.

The decline in sales of traditional mobile phones continued, dropping 39% from the level a year earlier in terms of value, while smartphone sales were down 24% over the same period.

Sales of Lumia, the smartphone on which the troubled company has bet its future, rose by 32% from the previous quarter to 7.4 million units.

Nokia used to be the global leader in making mobile phones but has been overtaken by rivals and is struggling to establish winning business models and mobile devices.

"During the third quarter, we expect that our new Lumia products will drive a significant part of our smart devices revenue," chief executive Stephen Elop said in a statement.

Nokia's losses came in below a 276 million euro loss predicted by analysts polled by Dow Jones Newswires, but the revenue fall was sharper than a 17% consensus.

The group has cut costs by reducing its workforce by 23% in the past year and by 7% in the last quarter.

Results were also boosted by a turnaround at telecom equipment maker Nokia Siemens Networks (NSN), which made a profit of eight million euros, compared with a loss of 226 euros in the same period last year.

Copyright Agence France-Presse, 2013

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