Nokia assures that it will not be able to meet the financial objectives set for 2023

Nokia assures that it will not be able to meet the financial objectives set for 2023

Finnish telecommunications equipment group Nokia declared on Saturday that will not meet its financial goals for 2023, as it cannot recognize the revenue it would earn from license renewal discussions that are expected to continue well into next year.

Nokia said its full-year outlook is based on the closing of pending license renewals at Nokia Technologies, its technology unit. You did not provide information about what these licenses are and with which parties they are in talks for its renewal. The company did not immediately respond to a request for comment.

Nokia said it does not expect negotiations to conclude before the end of the year and that The resolution is now expected to occur in 2024.which will benefit your financial results next year.

Nokia’s patent portfolio is based on more than US$154,777 million invested in research and development and consists of around 20,000 patents, including more than 5,500 declared essential for 5G.

At the beginning of this year, Nokia had signed a new patent licensing agreement long term 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 has also reduced the company’s profit margins.

Nokia, which reported a 20% drop in third quarter salessaid it may miss full-year targets for net sales, comparable operating margin and free cash flow.

He added that it is expected that thes net sales of the network businesses show significant improvement sequentially in the fourth quarter. It is scheduled to present its quarterly and annual results on January 25. In October, the network equipment maker cut up to 14,000 jobs to cut costs, but at the time it did not change its full-year outlook.

Nokia forecast net sales for 2023 of between US$25.6 billion and US$27.196 million. Its objective is to save between US$890 million and US$1,325 million between now and 2026.