Q2 2024 Nokia Oyj Earnings Call Transcript
Key Points
- Nokia Oyj (NOK) announced the planned acquisition of Infinera, which is expected to significantly increase the scale and profitability of its optical networks business.
- The company saw an improvement in order intake trends in Q2, with orders growing year on year, particularly in network infrastructure.
- Nokia Oyj (NOK) achieved a strong quarter of free cash flow with approximately EUR400 million in Q2.
- The company has actioned EUR400 million of run rate savings under its cost savings program, targeting EUR800 million to EUR1.2 billion in gross savings by 2026.
- Nokia Oyj (NOK) maintained its full-year outlook, tracking towards the midpoint or slightly below the midpoint of its comparable operating profit guidance of EUR2.3 billion to EUR2.9 billion.
- Nokia Oyj (NOK) experienced an 18% decline in its top line year-on-year, with three-quarters of the decline driven by India.
- The operating margin at 9.5% was 190 basis points below the prior year, negatively impacted by the decrease in top line.
- Sales in network infrastructure declined by 11%, with declines across all three business lines.
- The company revised its net sales planning assumption down from prior plus 2% to 8% growth to now minus 2% to plus 3%.
- Cloud and network services business declined 16% year on year, impacted by the challenging environment and the disposal of certain platform businesses.
Good morning, ladies and gentlemen. Welcome to Nokia's second-quarter 2024 results goal. I'm David Mulholland, head of Nokia Investor Relations. Today with me is Pekka Lundmark, our President and CEO, along with Marco Wirén, our CFO.
Before we get started, a quick disclaimer. During this call, we will be making forward-looking statements regarding our future business, proposed transactions and financial performance. And these statements are predictions that involve risks and uncertainties. Actual results may therefore differ materially from the results we currently expect. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the risk factor section of our annual report on Form 20-F, which is available on our Investor Relations website. Within today's presentation, references to growth rates will mostly be on a constant currency basis and margins will be based on our comparable reporting.
Please note that our Q2 report and the presentation that accompanies this call
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