Nokia’s fourth-quarter group earnings before interest and taxes (EBIT) increased 7 percent from a year ago to 1.0 billion euros.
The unit was bought by Nokia last year as part of its 15.6 billion-euro ($17 billion) acquisition of Franco-American rival Alcatel-Lucent.
Finnish network equipment maker Nokia reported its quarterly profits fell less than expected, helped by cost cuts and the acquisition of Alcatel-Lucent, and said the tough global market was starting to stabilize.
Nokia has three valuable patent portfolios that are commonly used in various consumer electronics such as tablets, mobile phones and personal computers.
Nokia has succumbed to a downturn in the telecoms equipment business, posting a sharp drop in quarterly earnings and warning that demand for the kit which drives global network traffic would shrink further in the coming year.
Nokia has signed a 1.36 billion euro one-year framework deal with China Mobile easing fears that it'd lose market share while merging with Alcatel-Lucent.
Nokia kicked off the rationalisation program in April with a target to slash $1 billion of operating costs by 2018
Nokia reported Tuesday a first-quarter net loss of 513 million euros ($584 million) due to lower demand in mobile networks and a drop in overall revenue despite its acquisition of Alcatel-Lucent. It warned of a further decline in earnings, causing the shares to plunge 7 percent.
Finland's Nokia said it has gained control of French counterpart Alcatel-Lucent following its 15.6-billion-euro ($17 billion) all-share offer and the two telecom equipment makers would start to combine their operations next week.
Finnish network equipment maker Nokia remains upbeat about its growth prospects in Africa despite a slowdown in many of the continent's fastest-growing economies, a senior company executive said.
Nokia's planned takeover of rival network gear maker Alcatel-Lucent will give it far greater scope to invest in new technologies like 5G mobile equipment while cutting costs, its chief executive said on Wednesday.
The company in April had announced acquisition of French firm Alcatel-Lucent in an all-stock deal valued at €15.6 billion ($16.6 billion).
Nokia is hiring software experts, testing new products and seeking sales partners as it plots its return to the mobile phone and consumer tech arena it abandoned with the sale of its handset business.
Nokia Networks was shortlisted in December 2013 as the lowest bidder for installing all the 3,526 mobile sites.
Germany's premium carmakers Mercedes, Audi and BMW have teamed up with private equity firm General Atlantic to increase their firepower to acquire Nokia's mapping unit HERE, according to two people familiar with the matter.
Finland's Nokia said last month it had started a strategic review for HERE, a competitor to Google Maps, after announcing a takeover of network equipment rival Alcatel-Lucent.
Nokia's maps business has drawn interest from at least four potential acquirers, including Facebook and a consortium of German carmakers BMW, Audi and Daimler, a German magazine reported.