Nokia Reports Q4 and Full Year 2022 Financial Results

Nokia Oyj concluded 2022 with a strong fourth quarter, reporting its financial results on January 26, 2023. The company's net sales saw an 11% increase in constant currency for the fourth quarter compared to the previous year, translating to a 16% reported growth. Full-year net sales grew by 6% (12% reported).

The Network Infrastructure division was a key driver, with net sales up 14% in constant currency during the quarter, supported by growth across all its segments. Mobile Networks reported a 3% increase, while Cloud and Network Services grew by 5%. Nokia Technologies experienced a significant revenue surge of 82% due to an option exercised by a long-term licensee.

Nokia reported an improved comparable gross margin of 43.5% in the fourth quarter, a year-on-year increase of 3.4 percentage points. The comparable operating margin stood at 15.5%. The reported net profit was significantly boosted by the re-recognition of a EUR 2.5 billion deferred tax asset. Comparable diluted earnings per share were EUR 0.16 for the fourth quarter and EUR 0.44 for the full year. Free cash flow reached EUR 0.4 billion in Q4 and EUR 0.8 billion for the full year.

Looking ahead to 2023, Nokia projects net sales between EUR 24.9 billion and EUR 26.5 billion. The company anticipates a comparable operating margin ranging from 11.5% to 14.0%, with a free cash flow conversion of 20% to 50% of comparable operating profit. The Board of Directors proposes a dividend of EUR 0.12 per share.