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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