Nokia earns less due to weak network business
A slowdown in network business projects caused a sharp drop in profits last year for the struggling telecommunications supplier Nokia. While revenue fell by 11 percent to just under 22.3 billion euros, net income plummeted by 84 percent to 679 million euros, the company announced Thursday in Espoo, Finland.
The final quarter was also worse than in the same period of the previous year. However, the adjusted operating result was higher than expected on the market. The company is also raising hopes of a business revival and announced a further share buyback with a volume of up to 600 million euros over two years.
After the management had lowered its annual targets twice and then canceled them completely, Group CEO Pekka Lundmark now sees at least the first encouraging signs: At the end of the year, order intake had risen significantly, he said according to the press release. "This is an indication that the general investment environment is at least improving somewhat."
For 2024, Nokia is targeting an operating result of EUR 2.3 billion to EUR 2.9 billion on a comparable basis, after this figure fell by almost a quarter to just under EUR 2.4 billion in 2023.
Nokia, like its competitor Ericsson, suffered greatly last year from its customers' lack of willingness to spend, particularly in the network business. In the race for a lucrative major order from the telecommunications group AT&T, the Swedish rival then prevailed over the Finns. In October, Nokia's top management hit the brakes and announced far-reaching job cuts of up to 14,000. (SDA)
