Nokia reported second-quarter sales up 1 percent year-on-year to EUR 5.619 billion, as growth in its licensing business offset a weaker market for network equipment. The adjusted operating margin jumped to 10.2 percent from 5.9 percent a year ago, and the net loss narrowed to EUR 423 million from EUR 667 million.
The company benefited from its settlement and licensing agreement with Apple in the quarter, which helped Nokia Technologies grow revenues 90 percent to EUR 369 million. Nokia Networks recorded sales down 5 percent to EUR 4.971 billion.
Nokia said it still expects the Networks business to reach a margin of 8-10 percent over the full year, compared to 8.2 percent in Q2. But similar to rival Ericsson, the company downgraded its outlook for the market, saying it now expects a 3-5 percent decline versus an earlier view of a low-single digit decline. Its Networks sales are expected to perform in line with the market, with some uncertainty about the timing of certain contracts in the second half of the year.
