Nokia Reports Q3 2020 Results, Net Sales Decline but Margins Improve
Nokia Oyj announced its Q3 and January-September 2020 financial results. The company reported a net sales decrease driven by services, but showed improved margins and positive operating profit.
Espoo – Nokia Oyj released its third-quarter and nine-month 2020 financial results on October 29, 2020. The company reported a 7% year-on-year decrease in net sales, primarily due to lower services revenue in Mobile Access, a development that was anticipated.
Despite the sales decline, Nokia reported continued margin expansion year-on-year, driven notably by improvements in Mobile Access and Optical Networks. Operating profit remained positive on a reported basis for both the third quarter and the first nine months of the year. Nokia Enterprise also demonstrated strong growth during the period.
President and CEO Pekka Lundmark acknowledged progress but stated that more change is necessary, citing expectations for a challenging 2021. Nokia plans to increase research and development investments to secure leadership in 5G technology and announced a new operating model featuring four business groups with P&L responsibility, aiming for market leadership in their respective sectors.
The company adjusted its 2020 outlook slightly, now forecasting a non-IFRS operating margin of 7-10% for 2021. Further details on strategy and long-term outlook are expected at a Capital Markets Day on March 18, 2021.