Nokia plans to buy back $653 million in shares after profits fall Warning of challenges in 2567
Nokia plans to buy back $653 million in shares after profits fall Meanwhile, net sales in the fourth quarter were 4 billion euros, down 5.7%. Ready to warn of challenges in 2567
On January 25, 2567, CNBC news agency reported that Nokia is one of the world's largest manufacturers of mobile network equipment. It said it would begin buying back 600 million euros, or about $653 million, of shares over two years this quarter. After reporting that the company's profits will decline in 2
Nokia Q4 net sales were €5.7 billion, down 23% year-on-year. Comparable operating profit fell 27% year over year to $846 million.
Pekka Lundmark Nokia's CEO said in a statement: “2566 has seen a significant shift in customer behavior. which affects the industry This is driven by the macroeconomic environment and high interest rates. along with sorting out customer inventory.” ready to add that “The challenging environment in 2566 will continue into 2567.″
Nokia expects comparable operating profit to be between €2.3-2.9 billion in 2567. Analysts expect operating income to be approximately €2.4 billion in 2567, based on consensus estimates. LSEG resolution
Nokia has been hit by telecom operators cutting spending on their networks. India, which has invested heavily in next-generation mobile networks over the past few years, is starting to slow down.
mobile network Nokia's largest revenue division, Nokia's largest revenue division, saw sales fall 17% year-on-year to 2.5 billion euros in the fourth quarter, Nokia's CEO said. “In the mobile network Key challenges are expected in 2567 related to more standardized investments in India. and AT&T's decision.”
Nokia faced a big problem in December. When US mobile carrier AT&T signed a deal with Nokia competitor Ericsson to build a new 5G network, AT&T's US network would rely heavily on Ericsson rather than Nokia. The deal affected Nokia. The stock is down about 25% from last year.
On Thursday (Jan. 25, 2567), the company said it is now lowering its comparable operating margin target. This will be achieved by 2569 from at least 14% to at least 13%.
“Nokia continues to see a path towards achieving comparable operating margins of at least 14%, but given the current market conditions in mobile networks, This is a thoughtful change.”
The company's warning about its outlook for 2567 comes after rival Ericsson reported lower sales and operating profits in the fourth quarter. Ericsson also signaled challenges ahead in the year. 4, noting that customers are reducing spending and investment is slowing down in India.
refer : cnbc.com
