“As our solid Q3 results demonstrate, we are making good progress in many parts of our business. Profitability was up on a year-on-year basis, we had the fifth consecutive quarter of solid free cash flow, Nokia Enterprise maintained its double-digit growth, and we continued to strengthen the competitiveness and cost position of our mobile radio products,” said Pekka Lundmark, President and CEO.
- Continued improvements in the Mobile Access portfolio; reducing product costs and improving product performance; commitment to invest in R&D to drive product leadership
- Seven percent year-on-year decrease in net sales, largely driven by lower services within Mobile Access, consistent with their expectation for lower network deployment services
- Strong year-on-year growth in Nokia Enterprise
- Continued margin expansion year-on-year, primarily driven by Mobile Access and Optical Networks
- Positive operating profit, on a reported basis, in Q3 and first nine months of 2020
- Solid free cash flow in Q3 and the first nine months of 2020
The company announced changes to their operating model which they claim are designed to better align with the needs of their customers, improve their performance and create shareholder value. The changes they announced mark a shift from end-to-end as a strategic principle to a more focused approach with each business group having a distinct role in their overall strategy.
Lundmark said each of the four new business groups will have P&L responsibility and ownership of creating a path to becoming “one of the market leaders in their respective sector.” The CEO said they plan to share more details about their strategy in December and at a Capital Markets Day in March, and outline a “rigorous approach to capital allocation.”