Revenues at Nokia Ireland fall 37%
Slide in revenues continues recent trend as mobile phone firm struggles to compete
A poster in a window advertising a Nokia Lumia 625 Windows smartphone. Revenues at the Irish arm of Finnish mobile phone giant continued to tumble in 2012. Photographer: Simon Dawson/ Bloomberg
Revenues at the Irish arm of Nokia continued to tumble in 2012, further reducing by 37 per cent to €56.2 million.
Accounts filed by Nokia (Ireland) Ltd for the 12 months to the end of December 31st, 2012, show that revenues fell from €90 million to €56.2 million.
The figures show the mobile phone firm recorded a pre-tax profit of €447,000 in 2012, after reporting a pre-tax loss of €1.65 million in 2011. Administrative expenses fell from €7.2 million to €2.7 million and cost of sales reduced from €84 million to €52.5 million.
However, the slide in revenues in 2012 continued the trend of recent years as the Finnish mobile phone giant struggled to compete with the new smart phones made by Apple and Samsung.
Nokia Ireland’s accounts since 2008 show the size of the firm’s business has reduced by 79 per cent over the five years. In 2008 the firm recorded revenues of €270.8 million, falling to €246.1 million in 2009, and reducing further to €199.8 million in 2010. In 2011 the company’s revenues dropping by more than half to €90.1 million.
Last year Microsoft agreed to buy Nokia’s mobile phone business for €5.4 billion and 32,000 Nokia employees are set to transfer to Microsoft early this year as part of the deal. The directors of Nokia Ireland say no change in expected in the operations of the Irish unit as a result of the Microsoft deal.