Nokia does not expect to achieve its financial outlook for FY23

Nokia’s financial outlook for 2023 assumes the closure of outstanding license renewals in Nokia Technologies. The company no longer expects these negotiations to conclude before year-end with resolution now expected to occur in 2024 and therefore benefit Nokia’s financial performance in 2024. While there have been intense negotiations between the relevant parties and courts around the world have found in Nokia’s favor, the company will prioritize protecting the value of its patent portfolio versus achieving certain timelines for resolution. Given this development combined with continued customer spending constraint in the quarter, Nokia now expects it will not achieve its financial outlook for the full year 2023 in relation to net sales, comparable operating margin and free cash flow. Nokia will report its fourth quarter and full year 2023 financial results on January 25, 2024. Regarding the Q4 2023 performance to date of Nokia’s networks businesses, net sales are expected to demonstrate a significant improvement sequentially. The quarter has proved somewhat more challenging than expected given on-going customer spending constraint and the recently communicated customer purchasing decision. Profitability in Nokia’s networks businesses is however expected to remain solidly within the comparable operating margin assumptions the company had previously communicated. Within its Nokia Progress Update on 12 December 2023, the company provided initial planning assumptions for each of its units in 2024 which remain unchanged. The company has seen clearly improving order trends in the fourth quarter, particularly in Network Infrastructure, that support the assumptions.