Nokia HERE Growing Revenue and Profit in Q2 2015

Click to Enlarge - Source: Nokia
Click to Enlarge - Source: Nokia
Nokia announced today their second quater 2015 revenue, including the detailed financials of their mapping division HERE. In the quarter HERE performed well with sales growing 25 percent against the same quarter last year to €290 million.

The profitability of HERE is also strengthening with an operating margin of 9.3% (up from 0% in Q2 2014 and 7.3% in Q1 2015) and an operating profit of 27 million. For the full year 2015 the company guidances are for an operating margin of 9% to 12%.

“HERE net sales increased 25% year-on-year, primarily due to higher sales to automotive customers and, to a lesser extent, Microsoft becoming a more significant licensee of HERE’s services, as well as higher sales to enterprise customers. This was partially offset by lower recognition of revenue related to smartphone sales by our former Devices & Services business,“ the company stated.

Nokia also added that “At constant currency, HERE overall net sales would have increased 12% year-on-year.“

Source: Nokia
Source: Nokia
4.1 Million New Vehicle License Sales
In the second quarter 2015, HERE had sales of new vehicle licenses of 4.1 million units, up 24 percent year-on-year (3.3 million units in the second quarter 2014).

“On a year-on-year basis, unit sales to automotive customers increased primarily due to both higher consumer uptake of in-vehicle navigation and higher vehicle sales. On a sequential basis, unit sales to automotive customers increased primarily due to seasonality,“ the company stated.

“HERE continued to deliver well, again showing year-on-year sales and profitability growth. Our strategic review of that business is now in an advanced stage, and I would like to reiterate that our focus is on what is in the best interests of our shareholders and the long term future of HERE,“ added Rajeev Suri President and CEO of Nokia.

Thursday, July 30th 2015

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