ANNUAL SALES OF NOKIA DECLINED BY 8 PERCENT ‘AMID SLOWDOWN IN CONSUMER SPENDING’

Sun 28 January 2024:

Nokia, the Finnish telecoms company, reported sales for 2023 of 22.3 billion euros (24.2 billion U.S. dollars), an 8 percent year-over-year fall.

According to the company, net revenues in the fourth quarter (Q4) decreased by 21% year over year to 5.7 billion euros.

Although profitability exceeded analysts’ expectations, Nokia’s stock rose by 7 percent in early Helsinki trading, reaching 3.37 euros.

Nokia cited slow decision-making by customers and high-interest rates as the reasons behind this development. However, the company’s CEO Pekka Lundmark described the result as “a resilient performance” considering the challenging environment and lower contribution from the high-margin patent licensing business.

Lundmark said that the challenging environment of 2023 is expected to continue during the first half of 2024, particularly in the first quarter.

This week, Nokia reported a breakthrough after reaching an agreement with the Chinese producer Oppo to license the production of mobile phones. Nokia said that talks with another producer, Vivo, are still ongoing.

In December 2023, Nokia experienced a major setback in the United States, when the U.S. operator AT&T entered a deal with the Swedish company Ericsson on the development of open networks.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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