Nokia has revealed it is no longer expecting to hit its outlook for its 2023 financial full year due to renewal discussions continuing to drag on well into 2024.

The telecoms giant which is due to report its fourth quarter and full-year financials on 25 January, has said due to outstanding licence renewals in Nokia Technologies, which is expected to conclude last year, its net sales, comparable operating margin and free cash flow targets for the year won’t be met.

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In a statement, the mobile giant said: “While there have been intense negotiations between the relevant parties and courts around the world have found in Nokia’s favour, the company will prioritise protecting the value of its patent portfolio versus achieving certain timelines for resolution.”

Regarding its Q4 performance net sales “are expected to demonstrate a significant improvement sequentially.”

The company added: “The quarter has proved somewhat more challenging than expected given ongoing customer spending constraints 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.”

The news comes as Nokia recently revealed it has lowered its comparable operating margin target to at least 13% by 2026 compared to a previous figure of 14%.