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STOCKHOLM\/COPENHAGEN: Telecom equipment<\/a> makers Nokia<\/a> and Ericsson<\/a> were among the worst performers in Europe<\/a> on Thursday, bruised by ongoing patent battles which cut profit margins and offset strong demand for 5G equipment<\/a>.
While the revenue of both companies beat expectations thanks to the rollout of 5G<\/a>, delayed royalty payments meant their core profit missed analysts' expectations.
Shares in Ericsson slumped 12% and were the worst performers in the STOXX 600 while Nokia shares fell almost 5% to be among the worst.
As the early stages of a rollout of large projects like 5G tend to have lower margins, telecom companies depend on their high-margin patent royalty business to boost profits. Companies such as Ericsson charge $2.50 to $5 for every 5G handset they sell and come under pressure when negotiating new contracts.
Ericsson's quarterly royalty revenue fell 1.1 billion Swedish crowns ($98.24 million) as it battled companies such as Apple<\/a> over patents. Nokia's patent revenue was down by 62 million euros ($60.67 million), mainly due to a dispute with Oppo and Vivo.
Nokia's gross margin fell to 40.1% from 40.7%, a tad better than Ericsson's fall to 41.4% from 44%.
\"We are very confident about our portfolio of patents and we are in no rush to strike a deal ... we are going to make sure we get a good mutually beneficial deal,\" Ericsson CFO Carl Mellander said in an interview.
However, when an agreement is reached, all the pending royalties are paid in a lump sum.
While the companies continue to benefit from higher spending on 5G equipment, they both warned of cooling down of their main market, North America.
\"The North American market has grown very fast this year and it's prudent to expect some kind of normalization of the market,\" Nokia Chief Executive Pekka Lundmark said in an interview.
\"But it's too early to give detailed estimates because the operators have not yet announced their capex plans for next year,\" he said.
The companies are expecting other countries, such as India to be a major driver for growth in 2023.
India's Bharti Airtel and Reliance Jio<\/a> launched 5G services in the world's second most populous country earlier this month and has picked Nokia and Ericsson as equipment suppliers.
Analysts at Jefferies said the decline of high-margin markets like the U.S. and growth of low-margin markets like India would increase margin pressures in 2023.
Both companies have been trying to cut costs by spending on research amid chip shortages and supply chain disruptions due to the Russia-Ukraine war and chip shortages.
They plan to exit Russia by the end of the year.
Apart from the broad challenges, Ericsson has also been facing investigations over bribery in Iraq and investor ire over improper disclosure.
The company is being investigated by the U.S. Department of Justice (DOJ<\/a>) and Sec<\/a>urities and Exchange Commission (SEC) over its past conduct in Iraq. It had said it was engaging with both agencies and the outcome could not be assessed yet.
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斯德哥尔摩/哥本哈根:电信设备制造商诺基亚和爱立信表现最差的是欧洲周四,受到持续的专利战削减利润率和抵消需求强劲5 g设备。
虽然两家公司的收入超过预期的推出5克,延迟支付使用费意味着他们的核心利润低于分析师预期。
爱立信股价下跌12%,创下斯托克600指数中表现最差,而诺基亚股价下跌近5%是最坏的打算。
大型项目的早期阶段,推出5 g往往有较低的利润率,电信公司依靠高利润专利费业务来提高利润。爱立信等公司收取5 - 2.50美元每5 g手机销售和承压时谈判新合同。
爱立信的季度版税收入下降11亿瑞典克朗(合9824万美元),因为它与这样的公司苹果在专利。诺基亚的专利收入下降了6200万欧元(6067万美元),主要是由于与朋友发生争执和体内。
诺基亚的毛利率从40.1%降至40.7%,略比爱立信的从41.4%下降到44%。
“我们非常有信心对我们的专利组合,我们并不急于达成协议……我们要确保我们得到一个好的互利协议,“爱立信首席财务官卡尔melland称在接受采访时表示。
然而,当达成协议,所有的等待在一次性支付版税。
当公司继续受益于更高的支出5 g设备,他们都警告说,降温的主要市场,北美。
“北美市场今年增长非常快,它是谨慎的期待某种规范化的市场,”诺基亚首席执行官佩Lundmark在接受采访时表示。
“但还为时过早给详细的估计,因为运营商还没有宣布他们明年的资本支出计划,”他说。
公司预计其他国家,比如印度在2023年是增长的主要驱动力。
印度Bharti Airtel和依赖Jio推出了5 g服务在世界第二最多的国家本月早些时候,挑了诺基亚和爱立信设备供应商。
Jefferies的分析师说,美国等高利润市场的衰落和低利润的市场,如印度的增长在2023年将增加利润率的压力。
这两家公司一直在试图削减成本支出研究在芯片短缺和供应链中断由于Russia-Ukraine战争和芯片短缺。
他们计划今年年底退出俄罗斯。
除了广泛的挑战,爱立信还面临调查在贿赂伊拉克和投资者对信息披露不当的愤怒。
该公司由美国司法部正在调查(司法部),证券交易委员会urities交易委员会(SEC)在伊拉克对其过去的行为。它说,这是与机构和结果无法评估。
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