Nokia to change strategy to compete in 5G revolution
The Finnish technology company will focus on four major business areas: mobile networks, IP and fixed networks, cloud and network services, and Nokia Technologies
Finnish telecommunications and networking equipment maker Nokia has announced a strategic turn to compete in 5G. “Our performance in 2021 is expected to be difficult and more changes are needed,” said Pekka Lundmark, Nokia president and CEO, referring to the pressures on the company’s margins and the loss of market share in North America, which implies the need to invest more in R&D to compete for the leadership of the 5G transformation.
The multinational will be reorganized around four major business areas: mobile networks, IP and fixed networks, cloud and network services, and Nokia Technologies. “Our goal is to better align with our clients’ needs, thereby increasing accountability, reducing complexity, and improving profitability. Going forward, we will take a more rigorous approach to capital allocation and invest to win in those segments in those of us who decide to compete,” Lundmark said.
On the other hand, the Finnish company reported that in the third quarter of 2020 it obtained an attributable net profit of 193 million euros, 135 % more than in the same period of 2019, while its turnover decreased by 6.9 %, up to 5,294 million.
From January to September, Nokia achieved an attributed net profit of 170 million euros, compared to the ‘red numbers’ of 557 million registered in the first nine months of 2019. The Finnish’s turnover in this period reached 15,299 million euros, 6.8 % less.
Looking to the end of the year, Nokia advanced that it expects to achieve a profit per share of between 0.23 and -0.03 euros, compared to the previous range of between 0.25 and -0.05 euros. Likewise, the company foresees an operating margin of 9 % compared to 9.5 % in the previous estimate.
Source: dpa
