Nokia Revises 2020 Segment Results Following Restructuring

Nokia Oyj has published revised segment financial data for 2020, reflecting a new organizational structure and reporting framework. The company announced these changes were driven by its new strategy, unveiled in October 2020, aimed at improving performance in evolving markets.

The updated operating model, effective January 1, 2021, focuses on enhancing accountability, transparency, and cost efficiency. Nokia has consequently adjusted its financial reporting to align with this new structure and how it evaluates operational performance.

Nokia will now report across four distinct business groups: Mobile Networks, Network Infrastructure, Cloud and Network Services, and Nokia Technologies. Each group will have its own profit and loss responsibility. Additionally, a 'Group Common and Other' category will be disclosed. Within Network Infrastructure, further segmentation will be provided for Fixed Networks, IP Networks, Optical Networks, and Submarine Networks.

Key reclassifications include moving Network management from Nokia Software to Mobile Networks, and Submarine Networks from Group Common and Other to Network Infrastructure. Several services, such as Packet Core and Enterprise Solution Services, have been transferred from the former Networks segment to the new Cloud and Network Services group.

Nokia intends to continue reporting net sales by customer type: Communication Service Providers, Enterprises, and Licensees. The recast figures provide a comparable basis for the 2020 financial results under the new reporting segments.