Last May Kallasvuo said during a shareholder meeting his company would sell [35 million GPS-enabled devices in 2008]article: 825. It would mean more than 20 million in the last quarter alone, which is probably a bit of a stretch even if Nokia’s GPS-phones line-up has been extended.
During the third quarter Nokia “Services and software” had EUR115 million of net sales and total billings of EUR140 million. Billings grew 15% sequentially. “Navigation has been and continues to be our lead service,” said Olli-Pekka Kallasvuo. Nokia now bundles navigation with over 70% of its GPS-enabled handsets.
In the same conference Nokia included for the first time NAVTEQ in its financial results. In the third quarter 2008 NAVTEQ reported net sales were EUR 156 million. NAVTEQ reported gross profit was EUR 138 million, with a gross margin of 88.5%. Non-IFRS gross profit was EUR 139 million, with non-IFRS gross margin of 88.5%. NAVTEQ had a reported operating loss of EUR 80 million, including the negative impact of EUR 109 million in intangible asset amortization and other purchase price accounting related items. The reported operating margin was -51.3%. NAVTEQ non-IFRS operating profit was EUR 29 million, with a non-IFRS operating margin of 18.5%.
In the third quarter of 2007 NAVTEQ revenue was $214.8 million (€162.2 million - at today’s exchange rate) and operating income was $50.5 million (€38.1 million), the operating margin was 23.5%.