Nokia 4Q06 results

Nokia posted solid earnings, profits and market leadership. 4Q06 revenues were €11.7bn, up 13%, and net profit of €1.3bn, up 19%. Nokia share gained 7% to €16.6 after the announcement. For the full year, Nokia reported a net income of €4.3bn, up 19%, on revenues of €41.1bn, up 20%. Nokia shipped 106m handsets in 4Q06, up 27%, and increased its market share to 36%, solidifying its N° 1 position in the market, in spite of its retreat from the CDMA market. It is interesting to note that Nokia outsells its competitors in the low-cost handsets in emerging markets (China, India, Latam, ) and maintained an operating margin above 17% in the division. The only negative point is ASP (average selling price) declining 10% over the last twelve months. Handsets account for more than €7bn or 75% of its revenues, while the entreprise and network business reported mixed results (+12% in infra revenues to €2.2bn, +5% in multimedia to €2.1, and 99% in Enterprise to €305m). Nokia reported €4.5bn operating cash flow in 2006.