Nokia Corporation Interim Report for Q3 2024

Strong gross margin improvement amidst ongoing market weakness

• Q3 net sales declined 7% y-o-y in constant currency (-8% reported) as growth in Network Infrastructure and Nokia Technologies was offset by decline in Mobile Networks primarily in India and a divestment in Cloud and Network Services.
• Order intake remained strong in Network Infrastructure, while the sales recovery continues to be slower than expected.
• Comparable gross margin in Q3 increased by 490bps y-o-y to 45.7% (reported increased 500bps to 45.2%), with improvements across business groups, particularly in Mobile Networks.
• Q3 comparable operating margin increased 160bps y-o-y to 10.5% (reported up 70bps to 5.7%), mainly due to higher gross margin, continued cost control and a benefit from the reversal of loss allowances for certain trade receivables.
• Q3 comparable diluted EPS for the period of EUR 0.06; reported diluted EPS for the period of EUR 0.03.
• Q3 free cash flow of EUR 0.6 billion, net cash balance EUR 5.5 billion.
• Continued to make significant progress with cost savings program, EUR 500 million run-rate of gross savings actioned.
• Nokia's full year 2024 outlook is unchanged. Nokia currently expects comparable operating profit of between EUR 2.3 billion and 2.9 billion and free cash flow conversion from comparable operating profit of between 30% and 60%.

Full press release