NSN sees drop in sales

Infrastructure vendor Nokia Siemens Networks (soon to be just Nokia) reported a year on year drop in sales of 17 per cent for 2Q13. Revenue generated by the firm dropped to €2.78bn from €3.34bn in the same period last year.

The vendor’s operating margin for the period rose to 0.3 per cent, however; it was -6.8 per cent in 2Q12. NSN’s non-IFRS operating margin was 11.8 per cent for the quarter, up from 0.8 per cent a year earlier, the firm said.

During the quarter, NSN was selected by TIM Brasil to build its 4G LTE network ahead of the 2014 football World Cup. It was also chosen by AIS to roll out 3G services in Thailand; modernised the 3G network for M1 in Singapore; launched 4G mobile broadband services for Ooredoo in Qatar; and enabled a 4G network for América Móvil subsidiary Claro Chile.

The vendor said its year on year decrease in sales of 17 per cent was “partially due to divestments of businesses not consistent with Nokia Siemens Networks strategic focus”, as well as the exiting of certain customer contracts and countries.

There was also reduced wireless infrastructure deployment activity, which affected both the mobile broadband and global services division.

“We benefited from another strong performance at NSN, which continued to deliver well against its focused strategy,” said Nokia CEO Stephen Elop. “With our recent announcement to purchase Siemens’ 50 per cent stake in NSN, we believe we will create value for Nokia shareholders and look forward to strengthening NSN as a more independent entity.”

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