Nokia Networks back from the brink with mobile sector sale finance boost
Finnish telecom device producer Nokia today announced a strong second quarter operating profit of £222m, down 14 per cent from last year but vastly stronger than experts predicted.
Mobile sector sale cut costs and generated revenue
The group, after selling its mobile department, now earns 90 per cent of revenue from its network revenue.
Microsoft, which bought Nokia’s devices and services business for $7.2bn earlier this year, yesterday reported a seven per cent drop in profit. As a result it will axe 18,000 jobs, many from that department.
Rajeev Suri, president and CEO of Nokia, said: “Nokia’s second quarter performance shows the strength of the company today. In Nokia Networks, our unique operating model has allowed us to deliver strong profitability while improving our topline trend.
"Maintaining this balance will remain a clear priority in the second half of the year, when we expect Networks to return to year-on-year growth. Our expectations for the full year 2014 have improved and we now expect full year underlying profitability for Networks to be at or slightly above our long term target range of five to 10 per cent."
He added: “This performance, along with the many conversations I have had with customers, partners, employees and others in my first quarter as CEO, gives me a high degree of confidence about our future.”
Nokia's group earnings per share were 0.06 euro, ahead of the market expectation of 0.04 euro.