Nokia Internet unit eyes growth
Nokia’s (NOK1V.HE: Quote, Profile, Research) new Internet business will focus initially on boosting sales and user numbers, and then target at least the same profitability as the rest of the group, Nokia’s new Internet services head said.
“We would not enter this business if we did not think we can make the same or better profits than in the current business,” Niklas Savander, the head of Nokia’s new Internet services unit told Reuters in an interview.
He declined to say when the company was hoping to start making profits from the new business line that is built around its new Ovi portal through which consumers can access Nokia’s music store or gaming service, among other services.
Savander said the company would open its new Ovi portal during the first half of this year.
“It’s about engineering credit report. It comes when it’s good enough and when the integration is good enough to add value,” he said.
Over the last year Nokia has bought companies and built up its own Internet team, a process that Savander said would continue.
“It has to be a relevant business for Nokia and then we are talking about at least a billion (euros in revenue). At first we have to invest enough to be on a growth track, not to optimize the bottom line,” he said. “I believe top-line is our first measure and then consumer, number of consumers.”
Savander said the firm was planning to roll out numerous new services at first to a limited clientele to test their appeal.
Filed under: online by Specialist