NOK - Nokia Oyj (NOK) Q1 2024 Earnings Call Transcript
2024-04-18 07:25:24 ET
Nokia Oyj (NOK)
Q1 2024 Earnings Conference Call
April 18, 2024 4:30 a.m. ET
Company Participants
David Mulholland - Head, Investor Relations
Pekka Lundmark - President and Chief Executive Officer
Marco Wiren - Chief Financial Officer
Conference Call Participants
Artem Beletski - SEB Enskilda
Daniel Djurberg - Handelsbanken
Sebastien Sztabowicz - Kepler Cheuvreux
Sami Sarkamies - Danske Bank
Simon Leopold - Raymond James
Richard Kramer - Arete Research
Joseph Zhou - Barclays
Sandeep Deshpande - JPMorgan
Jakob Bluestone - BNP Paribas Exane
Felix Henriksson - Nordea
Emil Immonen - Carnegie
Presentation
David Mulholland
Good morning, ladies and gentlemen. Welcome to Nokia's First Quarter 2024 Results Call. I'm David Mulholland, Head of Nokia Investor Relations. And today, with me is Pekka Lundmark, our President and CEO; along with Marco Wiren, our CFO.
Before we get started, a quick disclaimer. During this call, we will be making forward-looking statements regarding our future business and financial performance, and these statements are predictions that involve risks and uncertainties. Actual results may therefore differ materially from the results we currently expect. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the Risk Factors section of our annual report on Form 20-F, which is available on our Investor Relations Web site.
Within today's presentation, references to growth rates will mainly be on a constant currency basis. On margins, we'll be referring to our comparable reporting. Please note that our Q4 report and the presentation that accompanies the call are published on our Web site. This report includes both reported and comparable financial results, and a reconciliation between the two.
In terms of the agenda for today, Pekka will go through the key messages from the quarter, Marco will go through the financial performance in a bit more detail, and then Pekka will make a few comments on a couple of particular highlights in the quarter. And we'll then move to Q&A.
With that, let me hand over to Pekka.
Pekka Lundmark
Thanks, David, and thank you all for dialing in today. We said, back in January, that we expected a challenging environment in the first-half of this year, and that's what we saw in Q1. Our net sales declined 19% year-on-year in constant currency as the weak spending environment, that started to take hold in Q2, last year, remained with us. This impacted the profitability of our three networks businesses, but was offset by the benefit of deals signed in Nokia Technologies, and the ongoing cost reductions. Marco will go into more detail shortly about our financial performance in the quarter.
You may also recall that we started to talk about improved order intake trends in Q4, particularly in our Network Infrastructure business. I'm pleased to say that this has continued in Q1. We have seen good growth in order intake year-on-year, and the book-to-bill in Network Infrastructure was above one. The outlook for Fixed Networks has improved over the past three months, which is important as this is often the market that recovers first in our business. However, it might take somewhat longer for our Optical Networks business to recover. With the continued order intake strength, I remain confident that we will see a stronger second-half performance and that, for the full-year, our Network Infrastructure business will return to growth....
Nokia Oyj (NOK) Q1 2024 Earnings Call Transcript