Feeds

Nokia, new CEO Rajeev Suri, and BEELLIONS of euros burning a hole in the bank

What next for the Finns now free of phones?

Secure remote control for conventional and virtual desktops

Nokia Oyj begins a new chapter in its 149-year history today with new CEO Rajeev Suri – and a massive pile of cash in the bank.

Last week the venerable Finnish industrial combine finally cast off the mobile phones division that made Nokia a household name across the world.

What's left at Nokia today is an oddball combination of three unrelated businesses: network equipment, a maps company, and an intellectual property licensing operation.

In the first quarter of 2014, sales from the “Pure New Nokia” operation were €2.66bn ($3.68bn, £2.18bn), most of which (€2.33bn) is derived from networking equipment and associated services (revenues down 17 per cent year-on-year).

HERE maps brought in €209m (down three per cent year-on-year), and the IP division scooped €131m in revenues (up seven per cent). All three divisions in the new Nokia were profitable: networks bagged €216m in non-IFRS operating profit for the quarter (up 10 per cent year on year); HERE banked €10m (up from a €5m loss this time last year); and IP technologies grabbed €86m (up 18 per cent year on year).

By contrast, the "discontinued operations" – the phone biz – brought in €1.93bn in revenues (down 30 per cent on the year-ago quarter) and made an overall loss of €306m (it lost €73m in Q1 2013).

Not only was Nokia's phone wing's overall revenue lower this year, but it is declining faster than than that of the networks division - and unlike networks, didn't bring in any profit.

Beat that, Microsoft.

Nokia said that if the Microsoft deal had been completed within the Q1 2014 accounting period, it would have ended the quarter sitting on €10.5bn gross cash (€7.1bn net, $9.81bn, £5.82bn). Which is nice. It's using this cash pile – which is bolstered by the €5.4bn it finally received from Redmond – to hand out €3bn in dividends to shareholders, and will also spend €1.25bn buying back shares.

Nokia's new CEO Rajeev Suri was confirmed this week: he's a 20-year company veteran who previously ran the Networks mobile operation.

Nokia is today valued at €27bn ($37.3bn, £22.2bn). During the dotcom bubble it reached almost €200bn; as recently as 2008 Nokia was worth about €150bn; and until recently was viewed as a safe bet by a lot of European pension funds. ®

Secure remote control for conventional and virtual desktops

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Fast And Furious 6 cammer thrown in slammer for nearly three years
Man jailed for dodgy cinema recording of Hollywood movie
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Scale data protection with your virtual environment
To scale at the rate of virtualization growth, data protection solutions need to adopt new capabilities and simplify current features.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?