Nokia’s second quarter results of 2013 showed an operating loss of US$151 million on sales revenue of US$7.48 billion, sending shares tumbling 4 per cent.
The loss is an improvement on Q1, when it reported a loss of US$196 million on sales revenue of US$7.6 billion.
The Nokia Group however did report an underlying operating profit for the fourth consecutive quarter, with a margin of 5.3 per cent.
Stephen Elop, Nokia chief executive officer (CEO), said that the company has seen some signs of recovery and the recent acquisition of a stake in Siemens’ shares will enhance their future independence.
“We’re pleased to report an underlying operating profit for the fourth consecutive quarter on a group level,” Elop said.
“We benefited from another strong performance at Nokia Siemens Networks, which continued to deliver well against its focused strategy. With our recent announcement to purchase Siemens’ 50 per cent stake in Nokia Siemens Networks, we believe we will create value for Nokia shareholders and look forward to strengthening Nokia Siemens Networks as a more independent entity.”
Sales of the company’s flagship Lumia smartphones increased by 32 per cent quarter on quarter to 7.4 million handsets.
“We are very proud of the recent creations by our Lumia team. During the third quarter, we expect that our new Lumia products will drive a significant part of our smart devices revenue,” Elop said.
