Nokia targets 300M services subs by 2011, releases Q2 2009 results

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Published on July 17, 2009 with No Comments

Nokia LogoLeading handset manufacturer Nokia has released its second quarter results yesterday. The company used its second-quarter results announcement to talk up its Internet services strategy once again, unveiling a target to have 300 million users of its mobile services by the end of 2011.

Nokia has put a huge focus on its strategy of combining “services with high-quality devices” as it faces competition from traditional device manufacturers as well as new competition from the PC and Internet industries. Deals with the likes of Loudeye, Twango, Enpocket and Plazes, as well as the US$8.1 billion it spent on digital mapping company Navteq in 2007, have seen its Internet services strategy focus on such key areas as music, games, messaging and location-based services. It is now heavily pushing its new Ovi Store as well as Comes With Music, although both suffered from negative publicity at launch.

Highlights:

  • Nokia net sales of EUR 9.9 billion, down 25% year on year and up 7% sequentially (down 24% and up 7% at constant currency)
  • Devices & Services net sales of EUR 6.6 billion, down 28% year on year and up 7% sequentially (down 28% and up 7% at constant currency), and non-IFRS operating margin of 12.2% (20.1% in Q2 2008)
  • Devices & Services gross margin of 34.0%, up from 33.8% in Q1 2009
  • Services net sales of EUR 140 million (billings of EUR 207 million). Due to the divestment of the security appliance business in April 2009, services net sales are not directly comparable to prior periods
  • Estimated industry mobile device volumes of 268 million units, down 12% year on year and up 5% sequentially
  • Nokia mobile device volumes of 103.2 million units, down 15% year on year and up 11% sequentially
  • Nokia estimated mobile device market share of 38% in Q2 2009, down from 40% in Q2 2008 and up from 37% in Q1 2009
  • Nokia mobile device ASP of EUR 62, down from EUR 65 in Q1 2009
  • NAVTEQ net sales of EUR 147 million, up 11% sequentially, and non-IFRS operating margin of 12.8% (3.7% in Q1 2009)
  • Nokia Siemens Networks net sales of EUR 3.2 billion, down 21% year on year and up 7% sequentially (down 20% and up 8% at constant currency), and non-IFRS operating margin of 0.1% (6.7% in Q2 2008)
  • Nokia operating cash flow of EUR 716 million
  • Total cash and other liquid assets of EUR 7.0 billion at the end of Q2 2009

You can also download complete Nokia Q2 2009 results.

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