Nokia Oyj Q4 FY2024 earnings call

Portfolio management: Divested submarine networks, sold CNS units; acquired Infinera, Phoenix, Rapid’s. Infinera acquisition expected to close Q1 2025, integration prepared. Accelerated investment in IP networks, targeting EUR1B additional sales by 2028 with EUR100M OPEX. Mobile networks saw 18,000 new base station sites net, 5G tactical radio launched. CNS has 117 customers for 5G standalone core, over 850 private wireless customers.

Network Infrastructure: Q4 net sales grew 17%, with IP networks up 24%, fixed networks 16%, optical 7%. Gross margin 45.4%, operating margin 19.6%. Mobile Networks: Net sales declined 2% in Q4; North America grew double-digit, India stabilized. Gross margin 38.1%, operating margin 7.7%. Cloud and Network Services: Net sales grew 7% in Q4, despite divestment headwind; gross margin strong, operating margin 22.4%; managed services moved to mobile networks in 2025. Nokia Technologies: Q4 net sales grew 85%, run rate ~EUR1.3-1.4B, aiming for 1.4-1.5B mid-term.

2025 comparable operating profit 1.9-2.4B EUR, excluding Infinera. Free cash flow conversion 50%-80% of operating profit. IP networks investment to drive growth, Infinera acquisition to boost capabilities.

External factors like Chinese vendor competition, U.S. administration policies affecting technology sanctions. Internal factors like integration challenges with acquisitions, market dynamics in mobile networks.

Q: Joachim Gunell on mobile networks gross margin and visibility A: Pekka Lundmark on visibility improved, mobile networks gross margin underlying 38%-39% last year Q: Simon Leopold on hyperscalers and AI impact A: Pekka Lundmark on data center market acceleration, AI impact on Telcos Q: Artem Beletski on NI segment growth A: Pekka Lundmark on strong growth in NI, optical picking up Q: Sami Sarkamies on data center growth plans A: Pekka Lundmark on EUR100M OPEX for data center growth, Infinera synergy target Q: Sandeep Deshpande on mobile networks turnaround A: Pekka Lundmark on mobile networks strategy, private wireless and defense growth Q: Daniel Djurberg on CNS 5G standalone A: Pekka Lundmark on 5G standalone momentum, CNS growth opportunities Q: Ulrich Rathe on China-U.S. tech competition A: Pekka Lundmark on Chinese vendor competitiveness, U.S. administration policies Q: Rob Sanders on Juniper deal and EUR100M investment A: Pekka Lundmark on no comment on Juniper, investment for R&D and go-to-market Q: Felix Henriksson on guidance range A: Pekka Lundmark on improving trends supporting upper end of guidance