Nokia Oyj (NYSE:NOK) Q1 2024 Earnings Call Transcript

Pekka Lundmark: Yes. Thank you, Emil. Yes, we started actions immediately in October when we announced the cost saving program. And of course, usually it takes some time, but we start to see already in quarter one impacts of the cost saving program. And just give you some more facts behind this. But if you look number of employees in end of quarter one compared to end of quarter four last year, so we’ve been reducing number of employees more than 2,000 people already in quarter one. So, we are in a good, I would say, position to execute the expected cost savings for this year. It’s totally in your savings of €500 where €400 is coming from the new program.

David Mulholland: Do you have a quick follow-up, Emil?

Emil Immonen: Yes, just on the MN side, so can you help me understand where is about the breakeven point in sales for your operating profit?

Pekka Lundmark: Yes, we have been working with our Mobile Networks has been working on reducing their cost base, but also what comes to the breakeven point. And with these actions that we have been taking and will take in the new cost saving program, the ambition level is that we will reach the breakeven point of top line of around €8 billion by 2026. At the same time, we also lower the breakeven point or the point where we would reach double-digit operating margin, which used to be €11.5 billion. I now believe that will be taken down to €10 billion.

David Mulholland: Thank you, Emil. And thank you everyone for your questions today. Ladies and gentlemen, this concludes today’s call. I would like to remind you that during the call today, we have made a number of forward-looking statements that involve risks and uncertainties. Actual results may therefore differ materially from the results currently expected. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in the Risk Factors section of our Annual Report on Form 20-F, which is available on our Investor Relations website. Thank you all for joining us.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.