Company: NOKBF
Filing Date: 2025-07-24
Form Type: 6-K
Source: 0001104659-25-070159
Chunk: 8

Company: NOKIA CORP
Filing Date: 2025-07-24
Form: 6-K
Chunk 8
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 a contract resolution that benefited Q2 2024. Nokia         
 Technologies net sales grew 3% reflecting some new deals         
 signed over the past 12 months. Network Infrastructure grew      
 8%, with growth in all business units. Cloud and Network         
 Services grew 14%, reflecting strength in Core Networks.         
 Gross margin                                                     
 Reported gross margin increased 10 basis points to 43.4% in      
 Q2 2025 and comparable gross margin was flat at 44.7%. The       
 flat gross margin reflected broadly stable performance across    
 Mobile Networks, which was flat despite the one-time contract    
 settlement benefit in Q2 2024, as well a stable performance in   
 Network Infrastructure. Notably, Cloud and Network Services      
 gross margin showed strong year-on-year improvement.             
 Operating profit and margin                                      
 Reported operating profit in Q2 2025 was EUR 81 million, or      
 1.8% of net sales, down from 9.7% in Q2 2024. Comparable         
 operating profit decreased 29% to EUR 301 million, while         
 comparable operating margin was 6.6%, down from 9.5% in Q2       
 2024. The decrease was driven by higher operating expenses,      
 resulting from targeted investments for long-term growth.        
 Other operating income also declined mainly reflecting the       
 negative impact from Nokia's venture fund investments.           
 Nokia's venture fund investments had a negative impact of        
 approximately EUR 50 million in Q2 2025, impacted by             
 unfavorable foreign exchange rate fluctuations, compared to a    
 gain of approximately EUR 10 million in Q2 2024. The impact of   
 hedging in Q2 2025 was negative EUR 6 million, compared to a     
 positive impact of EUR 10 million in Q2 2024.                    
 In Q2 2025, the difference between reported and comparable       
 operating profit was primarily driven by the amortization and    
 depreciation of acquired intangible assets and property, plant   
 and equipment of EUR 117 million, EUR 71 million of              
 restructuring and associated charges and EUR 39 million          
 related to the release of acquisition-related fair value         
 adjustments to deferred revenue and inventory. In Q2 2024,       
 the difference between reported and comparable operating         
 profit was primarily related to EUR 67 million related to        
 divestment of businesses and EUR 186 million related to the      
 divestment of associates, mostly offset by EUR 150 million of    
 restructuring and associated charges,