Nokia To Drive TIM Brazil's IoT Services For Enterprises
Zacks Investment Research | Dec 15, 2019 09:06PM ET
Nokia (HE:NOKIA) Corporation (NYSE:NOK) communicated that it has inked a contract with TIM Brazil, a leading telco and the Brazilian subsidiary of Telecom Italia (MI:TLIT), to provide IoT services to the enterprise customers of TIM Brazil. Financial terms of the deal remained undisclosed. Nokia’s share price fell 1.4% in Friday’s trading session to eventually close at $3.52.
Going forward, the companies will also work on unlocking new IoT solutions that can be applied in various industries to help enterprises undergo digital transformation. As part of the deployment, the Nokia IMPACT IoT platform, which simplifies the process of bringing and scaling multiple applications onto a single platform, will provide IoT device management and service capability exposure.
The Brazilian market is considered to be the largest IoT market in Latin America, with extensive adoption of IoT technologies projected to add $200 billion to the country’s economy by 2025. With Nokia’s Worldwide IoT Network Grid (WING) managed service, TIM and its enterprise customers across industries will be able to capture IoT opportunities rapidly.
Notably, Nokia’s first WING deal in Latin America enables TIM to leverage new business models to tap this opportunity and generate additional revenue streams. WING will enable local and multinational companies to benefit from global IoT services. It features a distributed architecture that maintains all user data in-country, such as in Brazil, to remain compliant with data sovereignty and privacy laws.
In the last reported quarter, Nokia’s net sales increased 4.2% year over year to €5,686 million. The performance was driven by improved industry demand and competitiveness of its end-to-end portfolio, coupled with growth across four out of six regions and all customer types. While sales increased in Asia-Pacific, Europe, Latin America and North America (up 14%, 6%, 6% and 7%, respectively), it declined in Greater China and Middle East & Africa (down 21% and 7%, respectively).
Due to margin pressure and additional 5G investments, Nokia lowered its 2019 and 2020 guidance. For 2019, the company expects non-IFRS earnings per share of €0.21 (+/- 3 cents), which was previously projected between €0.25 and €0.29. Non-IFRS operating margin is anticipated to be 8.5% (+/- 1 percentage point), clipped from earlier forecast of 9-12%.
For 2020, non-IFRS earnings per share are expected to be €0.25 (+/- 5 cents), previously anticipated €0.37-€0.42. Non-IFRS operating margin is likely to be 9.5% (+/- 1.5 percentage point), trimmed from previous estimate of 12-16%.
Shares of Nokia have lost 39.5% against the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.