Nokia shot down speculation from a Bloomberg report claiming that it is prepping its mobile unit for a US$10 billion sale for suitors including rival Samsung.
In a statement, the Finnish vendor said the it had “nothing to announce” in regards to the speculations and that “no related insider project exists”.
Nokia added that it is “committed to the success of its Mobile Networks business, a highly strategic asset for both Nokia and its customers.”
It claimed the unit had “made significant progress” in correcting its cost-bases, and winning new deals and customers.
“Nokia is focused on ensuring that Mobile Networks is positioned to serve its customers building the best performing networks, investing in its portfolio and creating value for Nokia’s shareholders,” Nokia said in its statement.
Mobile Networks contributes a significant portion to Nokia’s business. In Q2 2024, Mobile Networks contributed €1.97 billion in revenue a year-on-year plunge of 25%. Gross profit for the division dipped 3% from €877 million in 2023 to €851 million this year.
Nokia’s overall net revenues was €4.46 billion in the quarter an 18% year-on-year drop off. Nokia added in 2023 its financial results were spurred by spending from Indian operators that were ramping up 5G plans.
In the original Bloomberg report, sources speaking to publication claimed that Nokia had been speaking to advisors for options for its mobile networks which had for years struggled against rivals Ericsson and Huawei. Sources said Nokia is considering a partial sale, a tie-up with rivals or spinning it off.
The unit is valued roughly at $10 billion said the sources. Nokia’s total market value is around US$24.7 billion, after the news story broke and raised shares by 5.1% to €3.98, reported Bloomberg.
Nokia CEO Pekka Lundmark said in the vendor’s Q2 earnings statement that “In Mobile Networks the market dynamic remains challenging as operators continue to be cautious”. In August, Nokia announced a slew of deals in Argentina, Brazil, Eastern Europe, Ghana and Malaysia.
MORE ARTICLES YOU MAY BE INTERESTED IN…
Related posts
