Nokia reported fourth-quarter revenues from continuing operations up 9 percent year-on-year to EUR 3.80 billion. Adjusted operating profit rose 28 percent to EUR 524 million, while EPS was still down 58 percent to EUR 0.08.
Nokia reported revenue growth across all three divisions. Nokia Networks sales increased 8 percent to EUR 3.4 billion, led by a near doubling in revenues in North America. Mobile broadband sales rose 13 percent and services revenue was up 3 percent. Nokia's licensing revenues were up 23 percent to EUR 149 million, thanks to more income from Microsoft for making Nokia phones. HERE achieved 15 percent annual growth in revenues to EUR 292 million, helped by positive trends in the automotive market.
Nokia expects the sales growth to continue in 2015 and also raised its outlook for profitability at HERE. Nokia Networks exceeded its target for an adjusted operating margin of 11 percent last year with a result of 12.2 percent, and Nokia said it expects the margin this year to be in line with its long-term target of 8-11 percent. The networks business is expected to see a soft Q1 due to weak seasonal demand.
At HERE, Nokia now expects an adjusted operating margin of 7-12 percent this year, compared to an earlier outlook for 5-10 percent. Helped by the positive market conditions and a focus on costs, HERE achieved a margin of 6.8 percent in Q4.
Nokia doubled operating cash flow last year to EUR 2.33 billion and finished the year with EUR 5.02 billion in cash. The company increased its annual dividend to EUR 0.14 per share from EUR 0.11 in 2013.
