The Pak Banker - - COMPANIES/BOSS -

Nokia Oyj shares fell the most in nine months af­ter an award from a Sam­sung Elec­tron­ics Co. pa­tent dis­pute fell short of an­a­lysts' es­ti­mates, a sign that ex­tract­ing roy­alty rev­enue from smart­phone mak­ers is be­com­ing chal­leng­ing as global de­mand for handsets slows. The shares dropped as much as 13 per­cent, the steep­est in­tra­day de­cline since April 30, and were down 12 per­cent at 5.82 euros as of 10:53 a.m. in Helsinki, wip­ing out about 4.3 bil­lion euros ($4.7 bil­lion) from its mar­ket value. An ar­bi­tra­tion court of the In­ter­na­tional Cham­ber of Com­merce set­tled the amount of ad­di­tional com­pen­sa­tion Sam­sung needs to pay to Nokia, the Fin­nish com­pany said Mon­day in a state­ment, with­out pro­vid­ing ex­act fi­nan­cial de­tails. The rul­ing could lead to an­nual rev­enue of as much as 200 mil­lion euros from Sam­sung, Se­bastien Sztabow­icz, an an­a­lyst at Ke­pler Cheuvreux, said in a note to clients. He had pre­dicted as much as 250 mil­lion euros. The award is "well below con­sen­sus and broader ex­pec­ta­tions in the mar­ket," Ja­nar­dan Menon, an an­a­lyst at Liberum Cap­i­tal Ltd. in Lon­don, said in a note to clients. He said it's dif­fi­cult to ex­tract more roy­alty rev­enue from smart­phone mak­ers given the slow­ing de­mand for handsets. Nokia's pa­tent-li­cens­ing busi­ness now has a an­nual rev­enue run rate of about 800 mil­lion euros. Nokia's tech­nolo­gies divi­sion, which li­censes its pa­tents, had fourthquar­ter sales of about 400 mil­lion euros and full-year 2015 sales of about 1.02 bil­lion euros, it said.

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