Nokia says it expects to miss its sales, comparable operating margin and FCF targets for 2023, as discussions on the renewal of licenses for its Nokia Technologies division failed to reach a conclusion before the end of last year.

Although there were intense negotiations between the parties and the courts ruled in its favor, the group explains that it 'prioritizes protecting the value of its patent portfolio over meeting certain resolution deadlines'.

The Finnish network equipment supplier nevertheless expects to reach agreements in the year ahead, and that they will therefore benefit its financial performance in 2024 (including associated catch-up payments).

As far as its network activities are concerned, Nokia expects sales to improve significantly on a sequential basis in the fourth quarter of 2023, a quarter which, however, it says proved 'somewhat more challenging than expected'.

'The profitability of Nokia's network activities should, however, remain solidly within the comparable operating margin assumptions that the company had previously communicated', adds the group, which also confirms its initial assumptions for 2024.

Copyright (c) 2024 CercleFinance.com. All rights reserved.