HELSINKI – Nokia Oyj (HE:NOKIA) has reclassified its 2024 financials following the transfer of its Managed Services division from Cloud and Network Services to Mobile Networks, a move effective January 1, 2025. The realignment reflects Nokia’s strategic push towards cloud-native software and “as-a-service” offerings.
The reclassified data offers a clearer picture of the performance of both business groups in 2024. The Mobile Networks segment reported €8.159 billion in revenue with a 39.5% gross margin. The division’s research and development (R&D) costs totaled €2.160 billion, while sales and administrative expenses reached €756 million, resulting in an operating profit of €452 million and an operating margin of 5.5%.
Meanwhile, Cloud and Network Services generated €2.589 billion in revenue with a 44.7% gross margin. R&D spending for this group stood at €550 million, with sales and administrative expenses of €444 million, leading to an operating profit of €206 million and an 8.0% operating margin.
The shift of Managed Services into Mobile Networks is part of Nokia’s broader operational streamlining, aimed at enhancing network performance, security, and innovation. The company has long been a leader in intellectual property, research, and development, led by the pioneering Nokia Bell Labs.
Through this transition, Nokia is focused on integrating its network solutions into diverse ecosystems, opening new commercialization and scaling opportunities for service providers, enterprises, and partners worldwide.
