Nokia predicts it won’t reach its financial goals for all of 2023 • Business • Forbes Mexico

Nokia said it will miss its 2023 financial targets because it will not be able to recognize revenue it will receive from license renewal discussions, which are expected to continue into next year.

The Finnish telecoms equipment group said its full-year forecast was based on the closure of pending license renewals at its technology unit Nokia Technologies.

Nokia did not provide information about what these licenses are and with which parties negotiations are underway to renew them. The company did not immediately respond to a request for comment.

Nokia said it does not expect negotiations to be completed before the end of the year and now expects a decision to be made in 2024, which will benefit its financial results next year.

Nokia’s patent portfolio is based on more than €140 billion invested in research and development and consists of around 20,000 patents, including more than 5,500 declared essential for 5G.

Read: Nokia to lay off 14,000 employees due to falling profits

Earlier this year, Nokia signed a new long-term patent licensing agreement with Apple as the current license between the companies expires at the end of 2023.

Slowing sales of 5G equipment in key markets such as North America also dragged down the company’s profits.

Nokia, which reported sales fell 20% in the third quarter, said it may miss full-year targets for net sales, like-for-like operating margin and free cash flow.

He added that net sales from the network business are expected to show significant improvement in the fourth quarter. Quarterly and annual results are scheduled to be presented on January 25.

The networking equipment maker cut up to 14,000 jobs in October to cut costs, but it did not change its full-year forecast at the time.

Nokia forecasts net sales in 2023 to be between 23.2 and 24.6 billion euros. Its goal is to save between 800 and 1.2 billion euros between now and 2026.

According to Reuters

Some text and great information on our X (formerly Twitter), follow us!

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button