Q3 2024 Nokia Oyj Earnings Call Transcript
Key Points
- Nokia Oyj (NOK) reported strong growth in fixed networks (9%) and IP networks (6%) in Q3 2024, particularly in North America.
- The company achieved significant improvements in gross margin, expanding by 490 basis points year on year.
- Nokia Oyj (NOK) generated over EUR600 million in free cash flow in Q3, contributing to a net cash balance of EUR5.5 billion.
- The company is making progress in expanding to non-CSP customers, with increased investments in data centers, defense, and private wireless.
- Nokia Oyj (NOK) has made good progress on the Infinera acquisition, receiving necessary approvals and targeting closure in H1 2025.
- Net sales declined by 7% in Q3 2024, primarily driven by a 17% decrease in mobile networks.
- Optical networks saw a significant decline of 15%, with recovery expected to be slow.
- The overall market dynamic has been weaker than expected, impacting net sales assumptions.
- The company has lowered net sales assumptions for network infrastructure due to slower market recovery.
- Nokia Oyj (NOK) faces challenges in the Indian market, with sales expected to be at the lower end of the EUR1.5 billion to EUR2 billion range.
Good morning, ladies and gentlemen. Welcome to Nokia's third-quarter 2024 results call. I'm David Mulholland, Head of Nokia Investor Relations. And 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 Factors 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 we will refer to margins, it will be based on our comparable reporting. Please note that our Q3
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