Good news for Nokia, which has left behind losses and will carry out its umpteenth division restructuring, with the aim to step on the accelerator. The Finnish telecommunications company obtained a net benefit of 170 million euros in the first few months of the year, despite the 557 million losses recorded in the same period in 2019, inform this company briefs .
Nokia's gross benefit between January and September amounted to 5,760 million euros, 2.6% more in annual terms, but its operating result was 318 million euros in losses in the first months of 2019 to 444 million of greed this year. According to the company, the improvement in profitability was fundamentally due to the decrease in operating costs, thanks to the measures taken and the lowest cost of amortization and personal, as well as the increase in gross benefit. They are doing great in current days and resulting in profit with those reduction in operating cost which cost them a lot of money at the past and now they have overcome that.
The results have not been well received by the inverters. Nokia has been ranked as one of the most penalized companies in Europe and has suffered a drop of 18.5%, up to 2.81 euros per share, at the lowest level since the beginning of April.
The company, one of the three major worldwide manufacturers of mobile telephone equipment with Huawei and Ericsson, invoiced 15,299 million euros between January and September, 7.2% less on interannual terms. Nokia found this decline due to the drop in sales of telecommunication networks and associated services, even in reality all of its divisions had a lower interannual billing. Nokia calls for nostalgia in Nokia 8 launch
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According to Nokia, the Covid-19 pandemic affected its business over the entire time span of some factories, which had an impact on the sales of 200 million euros, even though the group believes that these winds have not been lost. , bell that will be produced more adelante.
Their income has been reduced in all geographic regions except Middle East and Africa, from where they have increased by 6%, and in Europe, the area where the billing in the variance is around 4,720 million euros. In Norteamérica, its main market today, sales are down 1%, up to 4,830 million euros, even though the largest downfall has been produced in China, from which it has been paid 955 million euros (30% less), and in Latin America, with 720 millones (28% less).
Restructuring of the divisions. Nokia Networks, the telecommunications network business, invoiced 11,825 million euros, 7% less than in the first months of 2019, falling in all of its segments. In spite of it, the increase in his greedinesses allowed him to obtain an operating benefit of 431 million euros, compared to seven million losses from the same period in the previous year.
Nokia Software, the new division that brings together the most essential businesses of the group after the last restructuring, invoiced 1,795 million euros, 5% less interannual, and reduced by 14% its operating benefit, up to 246 million euros. On the other hand, Nokia Technologies, responsible for managing its patent and licensing portfolio, reduced its input by 8%, up to 1,020 million euros, and its operating profit was equal at the same percentage and was situated at 846 million euros.
These include the use of intellectual property by third parties and perks from the sale of Nokia mobile phones, manufactured under the exclusive license of the Finnish company HMD Global. These are the first financial results presented by the new president and Nokia deputy director, the Finnish Pekka Lundmark, who in summer supported Rajeev Suri in front of the group. Coinciding with the highest responsible exchange rate, Nokia announces another restructuring of its organization, which from now on will count with four divisions: Mobile Networks (mobile networks), IP & Fixed Networks (IP and fixed networks), Cloud & Network Services (services for "cloud" and networks) and Technologies.
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