Nokia sets new medium-term targets (by 2023)

  •   26/03/2021 - 08h23
  •   DEHOUI Lionel

The economic sector is gradually trending towards the end of the first quarter of fiscal 2021. At Nokia, several events have marked this period. Moreover, after its annual general meeting on April 8, it will officially communicate the results of the first three months of fiscal 2020. But before that announcement, Nokia is setting new medium-term goals.

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Nokia sets new medium-term targets (by 2023)
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Rapid improvement of its business by 2023

The Finnish giant in the telecommunications sector has made public its new objectives for 2023. It expects to grow faster than its market. The equipment manufacturer also plans to improve its margins. Nokia expects to achieve operating margins between 10% and 13% in 2023. As a reminder, for fiscal 2021, the group expects margins between 7% and 10%.

Since the consensus was for 10.4% and 8.5% for 2023 and 2021 respectively, this new target can therefore be considered positive. However, these are rather conservative forecasts compared to the objectives of its major Swedish competitor Ericson. Therefore, the Finnish group intends to work hard to improve its turnover more quickly by 2023.

 

Dividend and job cuts threatened

On the other hand, Nokia has not announced any proposal for a dividend payment in the immediate future. Still, it reassured its shareholders and announced the study of the possibility of a dividend distribution at the end of the year for the fiscal year 2021.

It also plans to cut a significant number of positions in order to reduce its costs. This will affect a total of 5,000 to 10,000 positions. In addition, the company does not intend to deviate from its goal of halving its C02 emissions by 2030.

The Finnish equipment manufacturer has also finalised the signature of a 5-year agreement in line with its objectives.

 

5G (SA and NSA) in the US

On the other hand, Nokia has concluded a new agreement with AT&T in order to deploy its C-Band network on some American lands. This agreement will allow AT&T to better ensure the delivery of next-generation 5G services. This gives it a good combination of coverage and potentiality.

In addition, AT&T will gain flexibility in its 5G deployment, as the C-Band portfolio of the Finnish equipment manufacturer Nokia is composed accordingly. It takes into account cloud-based implementations, Open RAN products and support for 5G networks. These can be both autonomous (SA) and non-autonomous (NSA).

 

Nokia equips Singapore with 5G SA

Similarly, the telecom group has been chosen to deploy 5G SA networks in Southeast Asia and specifically in Singapore. This is the first ever 5G standalone RAN network in this part of the world.

It should be noted that Nokia won this contract following the tender launched by Antina, the joint venture created by mobile network operators StarHub and M1. This agreement will undoubtedly benefit Antina's customers. Indeed, the latter will benefit from an ultra-fast, high-security and, above all, low-latency 5G SA network. This contract will also promote new use cases in several fields (education, health, entertainment, transport and cloud gaming).