Last year, the business exceeded investors’ expectations in each quarter.
Network devices Nokia’s business has clearly improved.
The company announced on Tuesday that its operating profit margin, which measures its profitability, will be 11–13.5 this year. The change is significant, as Nokia estimates that it will not be 10-13 in March next year.
“A new view [tälle vuodelle] taking into account the estimated continuous improvement in core business, supply chain challenges and cost inflation. “
“Challenges” to supply chains mean a shortage of components that slowed revenue growth as early as July-September.
One of the key reasons for Nokia’s new success is that it has caught up with its competitors in fifth-generation (5g) mobile network technology and managed to simplify its operations.
These factors began to pay off last year. As a result, the company’s business was better than investors expected each quarter.
The company’s share price rose by more than two per cent to EUR 5.58 on the Helsinki Stock Exchange shortly after trading began on Tuesday.
Tuesday Nokia also announced that its profitability has been better than expected last year.
According to preliminary data, the operating margin, which measures profitability, ranged from 12.4% to 12.6%. The company estimates that in the summer it would be 10–12 this year.
The company’s turnover was estimated at EUR 22.2 billion, which corresponds to the previously estimated EUR 21.7–22.7 billion.
In the fourth quarter, the business developed mainly in line with expectations. On the other hand, non-recurring returns on private equity investments were higher than expected.
Nokia will publish its next interim report on February 3rd. At that time, the company will also re-evaluate its longer-term outlook.
The news is being updated.
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