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HELSINKI - Nokia Oyj (HE:NOKIA) announced the reclassification of its financial information for the year 2024 to reflect the transfer of its Managed Services business from the Cloud and Network Services group to the Mobile Networks business group. The change, effective from January 1, 2025, aligns with the company’s strategic shift as it moves towards cloud-native software sales and "as-a-service" offerings.
The reclassified data provides a comparison of the performance of the Mobile Networks and Cloud and Network Services business groups throughout 2024. The Mobile Networks group reported a total revenue of €8.159 billion for the year, with a gross margin of 39.5%. Research and development expenses totaled €2.160 billion, while sales and administrative costs were €756 million, leading to an operating profit of €452 million and an operating margin of 5.5%.
In contrast, the Cloud and Network Services group’s revenue stood at €2.589 billion for the same period, with a gross margin of 44.7%. This group’s research and development expenses were €550 million, and sales and administrative costs amounted to €444 million, resulting in an operating profit of €206 million and an operating margin of 8.0%.
The transfer of Managed Services to the Mobile Networks group is part of Nokia’s broader strategy to streamline its operations and focus on areas where it can leverage its strengths in network performance, security standards, and innovation leadership. Nokia has a century-long history of creating value through intellectual property rights and research and development, led by the award-winning Nokia Bell Labs.
Nokia’s commitment to integrating its network solutions seamlessly into diverse ecosystems aims to create new commercialization and scaling opportunities for service providers, enterprises, and partners worldwide.
This announcement is based on a press release statement and provides a snapshot of Nokia’s financial adjustments due to the reorganization of its business groups, underlining the company’s ongoing efforts to adapt to the evolving demands of the digital and network services market.
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