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Nokia says sees potential in digital health after write-down
October 27, 2017 / 9:17 AM / in a month

Nokia says sees potential in digital health after write-down

HELSINKI (Reuters) - Nokia said on Friday it remained confident in the potential of its digital health business for which it took a write-down in the third quarter.

A Nokia logo is seen at the company's headquarters in Espoo, Finland, May 5, 2017. REUTERS/Ints Kalnins

Digital health is one of the areas where the Finnish company seeks future growth opportunities amid tough market for its mainstay telecom network gear business.

Last year, Nokia bought France’s Withings, which makes activity trackers and thermometers, as the first move in the market. But Nokia’s interim report showed on Thursday it had written down 141 million euros ($164 million) of goodwill on the business for which it paid 170 million euros.

“The charge was taken as we updated our projections for the business,” Nokia spokesman said by email.

“Despite the charge, we remain confident in the potential of our digital health business, and believe we have the assets, the brand and the innovation capabilities to succeed.”

Digital health is part of Nokia Technologies unit, which earlier this month said it would halt development of its virtual reality camera.

About 90 percent of Nokia’s sales comes from the networks equipment business where profits dropped 23 percent in the third quarter.

Reporting by Jussi Rosendahl. Editing by Jane Merriman

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