Nokia results boosted by Lumia smartphone sales

With the sale of its devices business to Microsoft set to complete early in 2014, Nokia has reported a boost in sales of its Lumia smartphones

With the sale of its mobile devices business to Microsoft set to complete in the first quarter of 2014, Nokia has reported a boost in sales of its Lumia smartphones.

In its interim report for the period from January to September 2013, third quarter net sales increased by 6% quarter on quarter to €2.9bn.

Nokia reported strong demand for the Lumia 530 smartphone. Overall, sales of Lumia smartphones increased by 19% quarter on quarter to 8.8 million units.

Overall, Nokia Group net sales for the nine months to 30 September 2013 decreased by 22% year on year.

The company also took over full ownership of Nokia Siemens Networks (NSN) during the quarter.

"The third quarter was among the most transformative in our company's history," said Nokia's chief financial officer and interim president Timo Ihamuotila. "We became the full owner of NSN and we agreed on the sale of our handset operations to Microsoft, transactions which we believe will radically reshape the future of Nokia for the better. 

"Subject to the completion of the Microsoft transaction, Nokia will have a significantly improved earnings profile, a strong financial position and a solid foundation from which to invest."

The interim results highlighted that Microsoft will pay Nokia €1.6bn for a 10-year non-exclusive licence to its patents. Microsoft will have an option to extend this mutual patent licensing agreement to perpetuity. 

Microsoft will license Nokia’s HERE geo-location service for four years. HERE provides a cross-platform online and offline location mapping service with voice-guided navigation. Nokia stated that the revenue stream from Microsoft’s licensing of HERE is expected to become one of the top three customers of HERE.

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