Espoo, Finland, April 2, 2024 – In a move to further support its shareholders, Nokia Corporation (LEI: 549300A0JPRWG1KI7U06) has recently completed a significant repurchase of its own shares. The Finnish technology company aims to return up to EUR 600 million (approximately $700 million) of cash to its investors over the next two years.
With the initiation of the share buyback program, Nokia’s Board of Directors is committed to returning value to its shareholders. The first phase of the program began on March 20, 2024, and will continue until December 18, 2024, with a maximum aggregate purchase price of EUR 300 million.
On April 2, 2024, Nokia completed a transaction to acquire 499,111 of its own shares on the Helsinki Stock Exchange, at an average price of EUR 3.27 per share. This move adds to the company’s existing treasury shares, bringing the total to 79,693,171.
By repurchasing its own shares, Nokia aims to enhance shareholder value and optimize its capital structure. This action reflects the company’s confidence in its future and its commitment to delivering long-term value to its investors.
Nokia, known for its continuous technology innovation, creates networks that sense, think, and act by leveraging its expertise in mobile, fixed, and cloud networks. The company also focuses on intellectual property and long-term research, led by the renowned Nokia Bell Labs. Trusted by service providers, enterprises, and partners globally, Nokia strives to deliver secure, reliable, and sustainable networks.
For further information, inquiries can be directed to Nokia Communications at +358 10 448 4900 or via email at [email protected]. Alternatively, contact Kaisa Antikainen, Communications Manager, or Nokia Investor Relations at +358 40 803 4080 or [email protected].
Nokia’s commitment to its shareholders and dedication to technological advancement positions the company for continued success in the evolving digital landscape.
In addition to Nokia’s recent share buyback program, it is important to examine the current state of the industry and the market forecasts for the future. The telecommunications industry has seen significant growth in recent years, driven by the increasing demand for mobile and fixed networks, as well as cloud services.
According to market forecasts, the global telecommunications industry is expected to reach a value of $2.4 trillion by 2025, with a CAGR of 5.4% during the forecast period. This growth is attributed to factors such as the rapid proliferation of smartphones, the advent of 5G technology, and the increasing adoption of IoT devices.
One of the key drivers for Nokia’s share buyback program is the company’s commitment to enhancing shareholder value. By repurchasing its own shares, Nokia aims to optimize its capital structure and increase earnings per share, which can be beneficial for existing shareholders. This move reflects the company’s confidence in its future growth prospects and its dedication to delivering long-term value to its investors.
However, the telecommunications industry also faces certain challenges and issues that could impact Nokia’s performance. One of the main challenges is the intense competition among telecom equipment vendors. Companies like Ericsson, Huawei, and Cisco are competing for market share, which puts pressure on pricing and profitability.
Moreover, the geopolitical landscape and regulations surrounding the telecom industry can also impact Nokia’s operations. The company needs to navigate through various regulations and comply with market-specific requirements in different regions, which can create additional costs and complexities.
To stay ahead in the market, Nokia continuously focuses on technology innovation. The company’s commitment to research and development is exemplified by Nokia Bell Labs, which is a renowned institution driving technological advancements. This emphasis on innovation enables Nokia to create networks that are secure, reliable, and sustainable, catering to the needs of service providers, enterprises, and partners globally.
For more information about Nokia’s initiatives and developments, interested individuals can visit the official Nokia website at www.nokia.com. The website provides comprehensive information about Nokia’s products, solutions, and latest news.
In conclusion, Nokia’s share buyback program is a strategic move to enhance shareholder value and optimize its capital structure. The company operates in a dynamic and competitive industry, but its commitment to technology innovation and long-term value creation positions it for continued success in the evolving digital landscape.