Nokia reveals dramatic losses of €826m as nosedive continues

Finnish firm ships four million Lumia devices but slump continues

Nokia has announced yet another disastrous round of financial results, posting a loss of €826m, as the firm's star wanes even further.

The firm's second quarter figures had expected to be poor after a pre-earnings warning and the announcement that another 10,000 jobs would be shed back in June. The figures on Thursday confirmed the worst.

Overall sales were down 19 per cent in the quarter ending 30 June, 2012 compared to the same period in 2011, slumping from €9.2bn to €7.5bn.

The firm also revealed that shipments of Lumia devices hit four million in the quarter, double that of the last quarter, although this is still far behind Android and Apple devices, despite critical acclaim for its devices.

Chief executive Stephen Elop admitted the figures were poor but remained upbeat about the firm's position.

He claimed time was still on its side and that Windows Phone 8 would help push devices too, despite older Lumia devices not being forward compatible with the update.

"While Q2 was a difficult quarter, Nokia employees are demonstrating their determination to strengthen our competitiveness, improve our operating model and carefully manage our financial resources," he said.

"We shipped four million Lumia Smartphones in Q2, and we plan to provide updates to current Lumia products over time, well beyond the launch of Windows Phone 8. We believe the Windows Phone 8 launch will be an important catalyst for Lumia."

Analyst Nick Dillon from Ovum told V3 that the results, while bad on the surface, held some promise for the firm.

"After a run of bad news, I would say the results are a glimmer of hope for Nokia. While it is still losing cash at a worrying rate, the fact that it has managed to double Lumia sales during each of the last two quarters shows that it is heading in the right direction," he said.

"If it can keep this momentum up then there is a chance it could turn things around."

The figures compound a tough year for Nokia, which announced losses of €1.3bn in its first quarter earnings in April.