ESPOO - Nokia Corporation (HEL:HE:NOKIA) today announced the reallocation of its Managed Services business from the Cloud and Network Services segment to the Mobile Networks business group, effective since January 1, 2025. The Finnish telecommunications company provided recast comparative financial data for both segments for the full year of 2024 to reflect this internal reorganization.
The Managed Services business, which has been part of Nokia’s portfolio since 2021, offers outsourced network management for multi-vendor Radio Access Network (RAN) systems. Nokia’s strategic decision aligns with its Cloud and Network Services group’s focus on cloud-native software sales and ’as-a-service’ products, as well as enabling customers to monetize networks through Application Programming Interfaces (APIs). The company believes that the Managed Services business will be better suited within the Mobile Networks group.
The recast financial information presents an adjusted view of the company’s performance in 2024, with Mobile Networks now reporting net sales totaling €8.159 billion and an operating profit of €452 million for the year. The segment’s gross margin averaged 39.5% over the four quarters. Cloud and Network Services, in contrast, showed net sales of €2.589 billion and an operating profit of €206 million, with a gross margin of 44.7% for the same period.
Nokia’s reshuffling of its Managed Services business is part of its broader strategy to streamline operations and enhance its product offerings in a rapidly evolving telecommunications landscape. The company continues to focus on innovation through its Nokia Bell Labs and emphasizes the creation of high-performance networks that integrate seamlessly into various ecosystems.
This move is expected to provide clearer financial reporting and allow for a more focused strategy in both the Mobile Networks and Cloud and Network Services segments. The information provided is based on a press release statement from Nokia.
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