Nokia’s Chief Executive said he was “disappointed” in his company’s sales performance last year as he revealed the latest financial report.

But Rajeev Suri also noted that the ability to provide an end-to-end product portfolio allied to improving market conditions should spell an improvement this year.

The Finland-based vendor saw like-for-like sales fall 13 percent year-on-year to €6.7 billion in the three months to December, while operating profit fell 27 percent to €940 million.

Sales continued to be affected by “challenging” market conditions, notably in its network business, while increased R&D spend partly explains the decline in operating profit.

The Q4 figures pushed full-year revenues down 10 percent to €23.9 billion.

Nokia’s principal networks arm registered a 12 percent decline in sales to €21.8 billion in 2016, while the smaller Technologies business unit saw revenues fall two percent to €1 billion.

On a reported basis, when assets belonging to Alcatel-Lucent are included, revenues rose 89 percent to €23.6 billion last year but the combined business still made a net loss of €912 million.

Nokia President and CEO Rajeev Suri said: “At the start of the year, Nokia was focused primarily on mobile networks.  

“We ended the year as a company with a complete portfolio spanning mobile, fixed, routing, optical, stand-alone software and more; with solid opportunities to drive higher returns through expansion into new customer segments; with emerging businesses in digital health and digital media; and with greatly expanded patent and brand licensing activities.

“While I remain disappointed with our topline development in 2016, we continue to expect our performance to improve in 2017 and see the potential for margin expansion in 2017 and beyond, as market conditions improve and our sales transformation programs gain further traction.”
 
Read more: “Investors want to see performance, not excuses”, says Nokia CMO

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