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Nokia raises margin target for networks business
2014-11-14 08:53:00| Telecompaper Headlines
(Telecompaper) Nokia has raised its target for profitability at its core business and said it aims to resume paying regular dividends. At its Capital Markets Day event, Nokia said it now targets an adjusted operating margin at Nokia Networks of 8-11 percent, compared to a previous goal of 5-10 percent. It already reached a margin of 11.5 percent over the first nine months of this year and targets a figure of around 11 percent for 2014. Nokia Networks' strategy is to build on its current momentum while transforming to serve the operator of the future, the company said. The target is to grow slightly faster than the market over the long term. For 2015, the company expects growth in Nokia Networks' net sales and an adjusted operating margin in the new target range. The navigation division Here is also expected to grow sales and reach an adjusted operating margin of 5-10 percent. The strategy for Here is to "win in automotive, grow in the enterprise segment and leverage the unique assets", Nokia said, while also improving profitability through increased efficiency. The licensing division Nokia Technologies will grow revenues next year as well, excluding any amounts related to the expected resolution of arbitration with Samsung. Nokia Technologies' operating expenses also will increase "meaningfully", due to higher investments in licensing activities and development, Nokia said. For shareholders, Nokia said "recommencing an ordinary dividend is one of our main priorities", and the company will also continue to repurchase shares.
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Category:Telecommunications