Nokia's sales in the fourth quarter of 2017 were 6.7 billion euros, up 5% year-on-year

[51CTO.com original article] There is still one week to go before the New Year's Eve of 2018. On the eve of the festival, Nokia released its fourth quarter and full-year financial report for 2017, handing over a heavy report card to everyone. The financial report shows that Nokia's net sales in the fourth quarter of 2017 were 6.7 billion euros, and net sales increased by 5% year-on-year based on non-IFRS and fixed exchange rates. Overall, Nokia's communication business grew steadily, Nokia Technology's net sales hit a new high, and its performance was strong.

Cash was strong in the fourth quarter of 2017, totaling €4.5 billion, thanks to strong net working capital management. Net cash increased sequentially by €1.8 billion. Non-IFRS gross margin was 41.4% in the fourth quarter of 2017 (42.2% in the fourth quarter of 2016) and operating margin was 15.1% (14.0% in the fourth quarter of 2016), driven by the strong performance of Nokia Technologies and the recovery of Nokia Networks. IFRS gross margin was 39.0% in the fourth quarter of 2017 (40.3% in the fourth quarter of 2016) and operating margin was 6.3% (4.8% in the fourth quarter of 2016).

Nokia Communications, with its steady and orderly operation and management, achieved a gross profit margin of 37.6% and an operating profit margin of 11.1% in the fourth quarter of 2017. Thanks to the business performance of IP networks and applications and ultra-broadband networks, net sales in the fourth quarter of 2017 increased by 2% year-on-year at a constant exchange rate.

Nokia Technologies' net sales in the fourth quarter of 2017 increased by 79% year-on-year, and its operating profit margin increased by 146% year-on-year, mainly due to the licensing agreement signed by ***. Net sales in 2017 increased by 57% year-on-year, and its operating profit margin increased by 94% year-on-year, mainly due to the signing of new licensing agreements and the resolution of arbitration cases.

It can be seen that in 2017, despite the overall decline in the international and domestic communications markets, Nokia still maintained a steady and growing performance, which also showed the good development trend of Nokia Communications after the integration, and successfully concluded the 2017 fiscal year. Nokia, which once dominated the mobile phone business for many years, now has an objective judgment on the situation in 2018 as it transforms towards the field of communications equipment and services.

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Wang Jianya, President of Shanghai Nokia Bell Co., Ltd.

Wang Jianya, President of Shanghai Nokia Bell Co., Ltd., said at a media communication meeting that the LTE and 4G markets will continue to decline in 2018. This situation is not only reflected in China, but also in the global 4G construction. 2018 is the first year of 5G, and Nokia's main task is to do a good job in 5G testing. At present, Nokia Bell's 5G testing with the Ministry of Industry and Information Technology has entered the third stage, and Nokia Bell has set up a relevant 5G team for this purpose. Secondly, Nokia Bell has cooperation with China Mobile, China Unicom and China Telecom in many cities, covering 5G-related content, such as speed improvement, more connections, lower latency, and verification of applications such as Internet of Vehicles and VR.

When talking about the investment in China's 5G business, Wang Jianya said that Nokia Bell has provided considerable support in terms of personnel and funds. It is expected that 5G will enter the trial or commercial stage by 2019.

Nokia President and CEO Suri said in the financial report that 5G commercial deployment is imminent. In order to seize this opportunity, Nokia has continuously increased its investment in 5G research and development and continued to promote the strategy of "continuously expanding into new vertical markets, establishing a strong independent software business, and maximizing the value of licensing business."

In 2018, Nokia's board of directors intends to continue to distribute growing dividends. It is expected that in 2020, Nokia will achieve earnings per share of 0.37-0.42 euros, a steady and positive free cash flow, and a group operating profit margin calculated on a non-IFRS basis of 12-16%. If Nokia's strategy can be successfully implemented, it is possible to achieve a high operating profit margin in this profit range.

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