Nokia Announced Financial Results for the Fourth Quarter

Nokia Corp. (NYSE: NOK) announced its earnings for the last quarter of fiscal 2016, with earnings beating expectations.

According to the statement, net profit for the fourth quarter increased from EUR1.79 billion in the same period last year to EUR633 million ($682 million) this year, which surpassed estimates of EUR404 million in the quarter ended December 31. The increase in profit was boosted by the sale of digital-mapping business.

Revenue in the fourth quarter increased from EUR3.61 billion in 2015 to EUR6.64 billion in 2016, however, it was below previous estimates of EUR6.77 billion.

“2016 was a time of transition for Nokia, a year in which we moved forward deliberately and successfully to execute our strategy and broaden our scope,” Rajeev Suri, the President and CEO of Nokia, said in the statement.

“Pleasingly, we saw growing customer supportfor Nokia’s strategy. Our sales pipeline with customers beyond our traditional communication service provider base accelerated over the course of the year, we saw an increasing share of our Networks pipeline coming from opportunities covering products and services from two or more of our business groups, and the potential of cross-selling started to become a reality,” he added.

According to the comments of analyst, even though the market will decline, the price pressure alleviates. Nokia, together with its rivals Ericsson and Huawei, will focus more on profitability rather than growth.

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