Nokia Expects to Miss 2023 Guidance Due to License-Renewal Discussions
December 29 2023 - 6:06PM
Dow Jones News
By Ben Glickman
Nokia said it expects to miss its 2023 financial outlook because
license-renewal discussions may continue into 2024.
The Finnish telecommunications-equipment maker said its outlook
for 2023 assumed the closure of license renewals in Nokia
Technologies, but it now expects these negotiations to continue
into next year, benefiting financial performance in 2024.
Nokia specifically expects not to achieve financial guidance for
net sales, comparable operating margin and free cash flow.
The company said it could not provide preliminary financial
results because the reporting period has not ended.
Nokia said quarter-to-date results indicated a "significant
improvement" sequentially in net sales, though results are still
under pressure from spending constraints and customer purchasing
decisions.
The company said earlier this month that challenging market
conditions in its mobile networks business were prompting reduced
operating margin guidance.
Nokia also is expecting its share of revenue from AT&T to
decline over the next several years after the telecommunications
provider signed a $14 billion supplier deal with Ericsson.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
December 29, 2023 17:51 ET (22:51 GMT)
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