From Nasdaq:

Finnish telecom company Nokia will not meet its financial targets for the year due to ongoing license renewal discussions. The closure of these negotiations in 2024 is expected to benefit Nokia’s financial performance next year. The company’s patents include over 5,500 essential to 5G, with significant investments in research and development. Slowing 5G equipment sales in key markets, including North America, has also affected Nokia’s profitability.

Nokia experienced a 20% fall in third-quarter sales and may not meet 2023 targets for net sales, operating margin, and free cash flow. The company expects to demonstrate a significant improvement in net sales for its network businesses in the fourth quarter. In an effort to reduce costs, Nokia cut up to 14,000 jobs earlier this year, without modifying its full-year outlook. The company’s outlook for 2023 net sales was 23.2 billion euros to 24.6 billion euros, targeting savings of 800 million euros to 1.2 billion euros by 2026.

The ongoing negotiations for license renewals with Nokia Technologies will impact the company’s financial performance. This news comes after Nokia reported a 20% fall in sales in the third quarter. Despite expectations for a significant improvement in net sales for its network businesses in the fourth quarter, Nokia may not meet targets for net sales, operating margin, and free cash flow in 2023. Additionally, Nokia’s agreement with Apple expired at the end of 2023, impacting its patent licensing revenue.



Read more: Nokia expects it will not meet full-year financial targets