MobileMonday Global

^{Kallasvuo happy with profitability} Multimedia shines on Nokia’s Q1

Nokia announced its Q1 results today estimating that its market share was 36 percent with shipment of 91.1 million units. The estimated industry device volume was 253 million units, down 13 percent sequentially and up 18 percent year on year.

Nokia’s 91.1 million units was down 14 percent sequentially and up 21 percent year on year. This translates to 36 percent market share, which is equal to Q4 2006 share and up from 35 percent in Q1 2006.

The average sales price of EUR 89 stayed at the same level as Q4 2006.

Nokia’s operating margin was of 13.6 percent, up sequentially from 13.3 percent in Q4 2006 excluding special items.

"I'm encouraged by Nokia's first quarter 2007 performance. Our profitability was strong, with both gross and operating margins up sequentially, excluding special items. We also saw good year on year device volume growth that led to an increase in our market share, said Nokia’s CEO Olli-Pekka Kallasvuo.

“Our Multimedia business group achieved record net sales and operating margin in a seasonally challenging environment. Multimedia continues to lead in the convergence space, with close to eight million Nokia Nseries devices shipped during the quarter, including the ground-breaking Nokia N95 multimedia computer.”

Enterprise Solutions business group showed improved results, bolstered by sales of the new Nokia E65. Nokia is targeting now the elusive break even for Enterprise Solutions in the second quarter 2007.

Nokia expects industry mobile device volumes in the second quarter 2007 to be slightly up sequentially while Nokia’s market share stays at 36 percent.

Nokia continues to expect industry mobile device volumes in 2007 to grow by up to 10 percent to 1076 million units.

Nokia increased revenue 4% in Q1 2007
EUR million	01.03.2007	01.03.2006	Change %
Net sales	9 856	9 507	4
Mobile Phones	5 583	5 869	-5
Multimedia	2 252	1 758	28
Enterprise Solutions	326	186	75
Networks	1 697	1 699	0
Operating profit	1 272	1 367	-7
Mobile Phones	936	1 085	-14
Multimedia	424	323	31
Enterprise Solutions	-38	-66
Networks	78	149	-48
Common Group Expenses	-128	-124
Operating margin (%)	12,9	14,4
Mobile Phones (%)	16,8	18,5
Multimedia (%)	18,8	18,4
Enterprise Solutions (%)	-11,7	-35,5
Networks (%)	4,6	8,8
Net profit	979	1 048	-7
EPS, EUR
Basic	0,25	0,25
Diluted	0,25	0,25

Source: Nokia

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