Nokia widens losses in 2017

February 1, 2018
Nokia's net loss widened in 2017, but underlying profits improved
Nokia's net loss widened in 2017, but underlying profits improved

Nokia said Thursday that its net loss widened in 2017, but that underlying profits improved, enabling the Finnish mobile phone maker to raise its forecasts for the coming years as operators prepare to roll out new lightning-fast 5G technology.

Nokia said in a statement that it booked a full-year after-tax of 1.49 billion euros ($1.8 billion) last year, nearly double the loss of 751 million euros in 2016.

Revenues slipped by two percent to 23.1 billion euros.

But at an underlying level, Nokia was back in the black, turning in an operating profit of 16 million euros, compared with a loss of 1.1 billion euros a year earlier.

Investors cheered the numbers and Nokia shares were showing a gain of 2.7 percent at the start of trade on the Helsinki stock exchange, outperforming the overall market.

Chief executive Rajeev Suri said he was "pleased that Nokia ended 2017 with a strong fourth quarter."

The group saw "growth in three of our five networks business groups as well as very strong growth in Nokia Technologies," he said.

"Group profitability increased in both the quarter and the full year.... this performance reflects the progress we have made since the third quarter with our mobile product portfolio, and positions us well for the upcoming transition to 5G."

Nokia's networks division, the group's biggest unit, declined by six percent to 20.5 billion euros.

And looking ahead, "we expect our market to decline again in 2018, although at a slightly lower rate than our previous forecast, given early signs of improved conditions in North America," CEO Suri said.

"For 2019 and 2020, we expect market conditions to improve markedly, driven by full-scale rollouts of 5G networks. As those rollouts occur, Nokia is remarkably well-positioned."

On Wednesday, Swedish rival Ericsson said it rang up huge losses last year as network competition, restructuring costs and investment in 5G technology pushed it deeply into the red.

Explore further: Nokia shares dive as company warns of tough market

Related Stories

Nokia makes loss on low demand, costs of Alcatel-Lucent deal

August 4, 2016

Finnish telecom company Nokia Corp. reported Thursday a second-quarter net loss of 665 million euros ($738 million) due to weak demand for mobile networks and the costs of integrating its acquired competitor Alcatel-Lucent.

Nokia narrows its Q1 loss as sales stagnate; CEO optimistic

April 27, 2017

Suffering from what the CEO described as "a typically seasonally weak quarter," Finland-based networks provider Nokia has reported a first-quarter net loss of €473 million ($515 million)— a slight improvement from the ...

Ericsson rings up huge losses in 2017

January 31, 2018

Swedish telecoms giant Ericsson said Wednesday that it rang up huge losses last year as network competition, restructuring costs and investment in lightning-fast 5G technology pushed it deeply into the red.

Fiat Chrysler nearly doubles profits in 2017

January 25, 2018

Italian-US carmaker Fiat Chrysler said Thursday that its net profit nearly doubled in 2017, outpacing analysts' expectations, but it downgraded its sales target for the current year.

Recommended for you

Archaeologists discover Incan tomb in Peru

February 16, 2019

Peruvian archaeologists discovered an Incan tomb in the north of the country where an elite member of the pre-Columbian empire was buried, one of the investigators announced Friday.

Where is the universe hiding its missing mass?

February 15, 2019

Astronomers have spent decades looking for something that sounds like it would be hard to miss: about a third of the "normal" matter in the Universe. New results from NASA's Chandra X-ray Observatory may have helped them ...

What rising seas mean for local economies

February 15, 2019

Impacts from climate change are not always easy to see. But for many local businesses in coastal communities across the United States, the evidence is right outside their doors—or in their parking lots.

The friendly extortioner takes it all

February 15, 2019

Cooperating with other people makes many things easier. However, competition is also a characteristic aspect of our society. In their struggle for contracts and positions, people have to be more successful than their competitors ...

0 comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.