Nokia Reports 9% Net Sales Growth in Q1 2023, Outlook Unchanged
Nokia Oyj announced a 9% year-on-year increase in net sales for the first quarter of 2023, measured in constant currency. The company maintained its full-year financial outlook.
Espoo, Finland – April 20, 2023 – Nokia Oyj reported a solid start to 2023, with first-quarter net sales rising 9% year-on-year in constant currency. The growth was primarily driven by strong performance in its Network Infrastructure and Enterprise businesses.
The company's comparable operating margin saw a decrease of 2.7 percentage points to 8.2%. This was attributed to expected seasonality in Mobile Networks' profitability, a lower contribution from Nokia Technologies, and a negative swing in venture fund investments. Despite this, reported operating margin increased due to prior-year provisions and divestment gains.
Nokia reaffirmed its 2023 financial outlook, expecting net sales between EUR 24.6 billion and EUR 26.2 billion and a comparable operating margin of 11.5% to 14.0%. The company noted it is observing signs of the economic environment potentially impacting customer spending, though underlying demand for 5G and fiber investments remains.
CEO Pekka Lundmark highlighted the company's renewed strategy and brand, positioning Nokia as a leader in B2B technology innovation. He mentioned the launch of new products like the PSE-6s optical networking platform and AirScale Habrok 5G radios, designed to improve customer energy efficiency.
Additionally, Nokia announced agreements to divest parts of its Radio Frequency Systems business and its VitalQIP business, along with the planned sale of its stake in the TD Tech joint venture. These portfolio management actions aim to strengthen Nokia's competitive positions.