Nokia Corporation reported annual financial results for the fiscal year ended December 31, 2023. The company's net sales decreased by 11% year-on-year to EUR 22.3 billion. Operating profit was EUR 1.7 billion, representing a 27% decrease from the previous year, with an operating margin of 7.6%. The net profit for the year was EUR 679 million, an 84% decline compared to 2022. The decrease in net profit was primarily due to a non-recurring tax expense related to an internal operating model change and the absence of a significant one-off benefit that positively impacted the previous year. Nokia's Board proposed a dividend distribution of EUR 0.13 per share from retained earnings and/or as assets from the reserve for invested unrestricted equity. The company's financial...Show More

Nokia Corporation reported annual financial results for the fiscal year ended December 31, 2023. The company's net sales decreased by 11% year-on-year to EUR 22.3 billion. Operating profit was EUR 1.7 billion, representing a 27% decrease from the previous year, with an operating margin of 7.6%. The net profit for the year was EUR 679 million, an 84% decline compared to 2022. The decrease in net profit was primarily due to a non-recurring tax expense related to an internal operating model change and the absence of a significant one-off benefit that positively impacted the previous year. Nokia's Board proposed a dividend distribution of EUR 0.13 per share from retained earnings and/or as assets from the reserve for invested unrestricted equity. The company's financial position remains solid with net cash and interest-bearing financial investments totaling EUR 4.3 billion. Nokia's business development saw the conclusion of its smartphone patent license renewal cycle, entering a period of stability with no major smartphone license agreements expiring for several years. The company also announced strategic and operational changes to address market challenges, targeting a cost base reduction by EUR 800 million to EUR 1.2 billion by the end of 2026. Nokia's future plans include maintaining investment grade credit ratings, recurring and growing ordinary dividend payments, and a share buyback program targeting a return of up to EUR 600 million to shareholders over two years.