Nokia Says It Won’t Meet Sales Outlook on Delayed License Deals

Nokia Says It Won’t Meet Sales Outlook on Delayed License Deals


(Bloomberg) — Nokia Oyj said it will miss its full-year outlook for sales, operating margin and free cash flow as it has not concluded renewals licenses for its technological unit.

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The Finnish telecommunications company said it hoped to close deals by the end of the year, but it now expects the deals won’t be completed until 2024.

“Even though intense negotiations have taken place between the parties involved and courts around the world have ruled in favor of Nokia, the company will prioritize protecting the value of its patent portfolio over respecting certain resolution times,” Nokia said in a statement on Friday.

Earlier this month, Nokia cut its long-term profitability target after losing a key U.S. contract and said its 5G networks business would face challenges over the next two years.

The company said it would report its fourth-quarter and full-year results on January 25. The initial outlook for 2024 provided when the company cut its long-term earnings forecast on December 12 remains “unchanged”, Nokia said.

–With help from Rafaela Lindeberg.

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