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?

Designing a Defense for Mobile Applications

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. ®

The smart choice: opportunity from uncertainty

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.