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HELSINKI: Finnish telecommunications tools maker Nokia warned Thursday that it expects one other robust financial surroundings within the first half of this 12 months after its web revenue sank in 2023.
Nokia and its Swedish rival Ericsson have launched price-slicing programmes as their prospects have decreased spending amid a slowing international economic system.
The Finnish agency reported a revenue of 679 million euros ($739 million) for final 12 months, down 84 per cent from 2022.
“In 2023 we saw a meaningful shift in customer behaviour impacting our industry driven by the macro-economic environment and high interest rates along with customer inventory digestion,” Nokia chief govt Pekka Lundmark mentioned in an earnings assertion.
“We expect the challenging environment of 2023 to continue during the first half of 2024, particularly in the first quarter,” he added.
Nokia reported an 11 % drop in web gross sales final 12 months to 22.26 billion euros, pushed by a fall in funding by cellular community operators in North America.
The outcomes had been additionally affected by a slowdown within the deployment of 5G networks in India.
In the final quarter of 2023, its adjusted working revenue fell 27 per cent to 846 million, however this was nonetheless increased than the 763 million euros anticipated by a gaggle of analysts polled by Bloomberg.
Nokia mentioned final 12 months it might minimize its workforce by as much as 14,000 individuals, decreasing prices by as much as 1.2 billion euros by 2026.
The firm additionally misplaced a battle with Ericsson for a $14 billion 5-12 months contract with US firm AT&T.
Atte Riikola, an analyst with Finnish market analysis agency Inderes, instructed AFP that the primary half of 2024 “will remain pretty bad for all the business areas” for Nokia.
“Mobile networks will remain a very tough market, in particular in North America, and is not expected to fully recover,” Riikola mentioned, including that “investors have to be patient.”
Nokia shares had been up over six per cent within the early hours of buying and selling on the Helsinki inventory trade, with buyers inspired by sturdy free money move generated within the final quarter and the announcement of a two-12 months, 600-million-euro share buyback programme, in response to analysts.
Lundmark mentioned the outlook might enhance within the second half of this 12 months.
“We are now starting to see some green shoots on the horizon, with improving order intake for network infrastructure and some of the specific deals we have won,” he mentioned.
For its half, Ericsson warned Tuesday that it anticipated additional market decline outdoors China this 12 months after reserving a lack of 26.1 billion kronor ($2.5 billion) final 12 months.
Nokia, Ericsson and Chinese agency Huawei are locked in a fierce battle for 5G enterprise world wide.
Nokia and its Swedish rival Ericsson have launched price-slicing programmes as their prospects have decreased spending amid a slowing international economic system.
The Finnish agency reported a revenue of 679 million euros ($739 million) for final 12 months, down 84 per cent from 2022.
“In 2023 we saw a meaningful shift in customer behaviour impacting our industry driven by the macro-economic environment and high interest rates along with customer inventory digestion,” Nokia chief govt Pekka Lundmark mentioned in an earnings assertion.
“We expect the challenging environment of 2023 to continue during the first half of 2024, particularly in the first quarter,” he added.
Nokia reported an 11 % drop in web gross sales final 12 months to 22.26 billion euros, pushed by a fall in funding by cellular community operators in North America.
The outcomes had been additionally affected by a slowdown within the deployment of 5G networks in India.
In the final quarter of 2023, its adjusted working revenue fell 27 per cent to 846 million, however this was nonetheless increased than the 763 million euros anticipated by a gaggle of analysts polled by Bloomberg.
Nokia mentioned final 12 months it might minimize its workforce by as much as 14,000 individuals, decreasing prices by as much as 1.2 billion euros by 2026.
The firm additionally misplaced a battle with Ericsson for a $14 billion 5-12 months contract with US firm AT&T.
Atte Riikola, an analyst with Finnish market analysis agency Inderes, instructed AFP that the primary half of 2024 “will remain pretty bad for all the business areas” for Nokia.
“Mobile networks will remain a very tough market, in particular in North America, and is not expected to fully recover,” Riikola mentioned, including that “investors have to be patient.”
Nokia shares had been up over six per cent within the early hours of buying and selling on the Helsinki inventory trade, with buyers inspired by sturdy free money move generated within the final quarter and the announcement of a two-12 months, 600-million-euro share buyback programme, in response to analysts.
Lundmark mentioned the outlook might enhance within the second half of this 12 months.
“We are now starting to see some green shoots on the horizon, with improving order intake for network infrastructure and some of the specific deals we have won,” he mentioned.
For its half, Ericsson warned Tuesday that it anticipated additional market decline outdoors China this 12 months after reserving a lack of 26.1 billion kronor ($2.5 billion) final 12 months.
Nokia, Ericsson and Chinese agency Huawei are locked in a fierce battle for 5G enterprise world wide.
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