Nokia Corporation Financial Report for Q2 and Half Year 2021
Nokia Corporation
Half year report
29 July 2021 at 08:00 EET
Nokia Corporation Financial Report for Q2 and Half Year 2021
Strong first half, 2021 Outlook revised upwards
Top-line strength continued in Q2, with constant currency net sales up 9% year-on-year, driven by growth across all business groups, with particular strength in Network Infrastructure. Reported net sales increased 4%.
Important progress on our three-phased strategy. Mobile Networks strengthening its competitiveness with major product launch, including some industry leading features. Network Infrastructure continued to gain share in the first half.
Our new operating model is delivering clear accountability and financial discipline through the organization.
Comparable gross margin of 42.3% (reported 41.0%) in Q2, reflecting broad improvements, particularly in Mobile Networks, which benefitted from a one-time software deal and 5G growth.
Comparable operating margin of 12.8% (reported 9.1%) in Q2, with improvements across all business groups, also helped by the one-time software deal in Mobile Networks.
Q2 comparable diluted EPS of EUR 0.09; reported diluted EPS of EUR 0.06.
Generated positive free cash flow for the fifth quarter in a row; liquidity position remains solid with EUR 3.7bn net cash.
Strong performance in first half 2021 with 9% constant currency sales growth (reported net sales 4%) and comparable operating margin of 11.9% (reported 8.8%), driving increase in our full year Outlook although headwinds remain for the second half.
Considering our strong start to 2021, we revise our full year 2021 Outlook, including net sales expected to be EUR 21.7bn to 22.7bn (previously EUR 20.6bn to EUR 21.8bn) with comparable operating margin in the range of 10-12% (previously 7-10%).
This is a summary of the Nokia Corporation Financial Report for Q2 and Half Year 2021 published today. Nokia only publishes a summary of its financial reports in stock exchange releases. The summary focuses on Nokia Groups financial information as well as on Nokias outlook. The detailed, segment-level discussion will be available in the complete financial report hosted at www.nokia.com/financials. Investors should not solely rely on summaries of Nokias financial reports, but should also review the complete reports with tables.
PEKKA LUNDMARK, PRESIDENT AND CEO, ON Q2 2021 RESULTS
I am delighted that our strong start to 2021 continued in the second quarter. Our constant currency sales growth of 9%, combined with good cost control, enabled us to deliver a comparable operating margin of 12.8%. Even excluding a one-time software deal in Mobile Networks, we saw good underlying progress in operating margin. We are already seeing the benefits of our new operating model which helped us to deliver such a strong financial performance.
The highlight of the second quarter was the Mobile Networks launch of our new AirScale baseband and radio products with up to 75% better power efficiency helping to reduce our environmental footprint and the lightest 32TRX massive MIMO active antenna in the market. In Network Infrastructure we sustained double-digit growth and have a series of product launches ahead in the second half to further strengthen our differentiation. Cloud and Network Services is making good progress on its portfolio rebalancing and Nokia Technologies continues to scale with two licensing agreements with automotive manufacturers including Daimler.
Considering our robust start to 2021, we are revising upwards our full year Outlook. We now expect a comparable operating margin between 10-12% for full year 2021, compared to our previous range of 7-10%. We have executed faster than planned on our strategy in the first half which provides us with a good foundation for the full year. We still however expect to face the earlier communicated headwinds in the second half, particularly with market share loss and price erosion in North America. Therefore, we still expect our typical quarterly earnings seasonality to be less pronounced in 2021. In addition, we continue to accelerate R&D investments and monitor risks around component availability, considering the strong demand for our products.
Overall, I am very happy with the progress made in the first half. I want to thank our entire team for their hard work and commitment.
FINANCIAL RESULTS
EUR million (except for EPS in EUR) Q221 Q220 YoY change Constant currency YoY change Q1-Q221 Q1-Q220 YoY change Constant currency YoY change
Reported results
Net sales 5 313 5 092 4% 9% 10 389 10 005 4% 9%
Gross margin %1 41.0% 38.1% 290bps 39.5% 36.8% 270bps
Research and development expenses1 (1 063) (1 013) 5% (2 060) (2 019) 2%
Selling, general and administrative expenses1 (712) (709) 0% (1 360) (1 489) (9)%
Operating profit 484 170 185% 916 94 874%
Operating margin % 9.1% 3.3% 580bps 8.8% 0.9% 790bps
Profit/(loss) for the period 351 99 255% 614 (17)
EPS, diluted 0.06 0.02 200% 0.11 0.00
Net cash and current financial investments 3 688 1 550 138% 3 688 1 550 138%
Comparable results
Net sales 5 313 5 093 4% 9% 10 389 10 007 4% 9%
Gross margin % 42.3% 39.6% 270bps 40.3% 38.0% 230bps
Research and development expenses (1 011) (953) 6% (1 985) (1 928) 3%
Selling, general and administrative expenses (585) (590) (1)% (1 137) (1 262) (10)%
Operating profit 682 423 61% 1 234 539 129%
Operating margin % 12.8% 8.3% 450bps 11.9% 5.4% 650bps
Profit for the period 539 316 71% 914 348 163%
EPS, diluted 0.09 0.06 50% 0.16 0.06 167%
ROIC2 18.4
Europe Stories
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
06/06/2026
Check Out Leading Monitor Brands
We'll have monitors of all shapes and sizes at GearExpo UK, so whether you're looking to upgrade or expand your set...
06/06/2026
Two Originals offerings join MPC line-up
Following on from their partnership announcement at NAMM 2026, Spitfire Audio and Akai Pro have announced the relea...
05/06/2026
Built from the same recordings as flagship library
Sonuscore's LUX Orchestral Strings has been met with widespread praise since its launch in late 2025,...
05/06/2026
High-end converter, interface & headphone amp upgraded
Said to represent the next evolution of RME's all-in-one reference converter concept, the all-new...
05/06/2026
Win a Soundgas Type 636P & Type G preamps
Soundgas, one of the UK's leading vintage and boutique audio equipment specialists have just announced the lau...
05/06/2026
New leadership of Technology Systems Division at Rohde & Schwarz On July 1, 2026, Hansj rg Herrbold and Andreas H gele will take over as Executive Vice Presid...
05/06/2026
Hitachi and Intel announced a strategic collaboration to explore opportunities t...
05/06/2026
05 Jun 2026
VEON's Kyivstar to Expand Digital Mobility Ecosystem with Acqui...
05/06/2026
RT Radio 1 Folk Awards to take place on Tuesday 10th November 2026, Vicar Street, Dublin
Moya Brennan, D nal Lunny, Mary Black and Christy Moore among previou...
04/06/2026
Steinberg DAWs now boast in-depth Tonalic integration
Celemony's innovative virtual session musician plug-in has just received an update that brings ARA...
04/06/2026
Get Hands-On With Over 20 Mic Brands
GearExpo UK is fast approaching, and if you've been looking for a chance to check out some new mics, then you'r...
04/06/2026
Combos feature new Amplifier Intelligence engine
Positive Grid's latest release sees the company introduce two new combo amplifiers that promise to offe...
04/06/2026
BackStory follows four Irish young people as they travel back to their parents' homelands
Modern Irish identity is enriched by cultures and influences from...
03/06/2026
Step sequencer-style panning tool revealed
Alongside their flagship self-titled sound-design platform, Sound Particles offer an array of creative effects an...
03/06/2026
Now features full H90 algorithm library
Eventide have announced the upcoming launch of the H9 Harmonizer Gen 2, a new and improved version of their hugely p...
03/06/2026
Significant discount available until 1 October 2026
Aim Audio have just announced a promotion that sees a significant discount applied to their Essence micr...
03/06/2026
Rohde & Schwarz to supply CERTIUM advanced communications system to Memmingen Ai...
03/06/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
03/06/2026
RT confirms multi-channel and free to air coverage of the expanded tournament with enhanced digital features and the return of Total Football for young fans
S...
03/06/2026
03 Jun 2026
VEON to Release 2Q26 Earnings on July 31, 2026 Dubai and New York, June 3, 2026 - VEON Ltd. (Nasdaq: VEON), a global digital operator ( VEON or t...
03/06/2026
RT has today announced Heineken 0.0 as the broadcast sponsor of their FIFA World Cup 2026 coverage.
The sponsorship, brokered by Dentsu, will see Heineken 0....
02/06/2026
Musically intelligent soft synth gets upgraded
Scaler Music will be probably be best known to many for their music theory tools, but their product range al...
02/06/2026
Powerful new vocal-production tool announced
Described as a vocal performance station , Klevgrand's latest plug-in combines pitch-correction with harmo...
02/06/2026
Launched alongside Go Green sale extension
McDSP have just released the latest addition to their APB line-up, DC-2 Dual Compressor, and have also announced ...
02/06/2026
Create custom tools for Ableton Live 12 Suite
Ableton have just introduced a new open JavaScript toolkit that allows anyone to create their own custom tools...
02/06/2026
Now features full H90 algorithm library
Eventide have announced the upcoming launch of the H9 Harmonizer Gen 2, a new and improved version of their hugely p...
02/06/2026
Plus UAD Half Yearly Sale now live
The latest arrival to the Universal Audio range delivers a new native pitch-correction plug-in that's capable of deli...
02/06/2026
Rohde & Schwarz to present comprehensive performance, conformance and spectrum-m...
02/06/2026
BTL Laboratory becomes Taiwan's first test house with a CTIA Certification c...
02/06/2026
If you've kept up with this article series, you know by now where to start w...
02/06/2026
With new DSP configurations and flexible licensing options, Calrec is removing the barriers to virtualised audio, giving broadcasters the freedom to scale produ...
02/06/2026
02 Jun 2026
VEON Closes USD 1.4 Billion Bond Offering, Refinancing 2027 Notes A...
02/06/2026
Praise for series three:
The Times - sun-dappled pleasure
The Daily Mail - The Homes Counties' Charlie's Angels
The Sun - 4* this [is an] enjoya...
02/06/2026
Wuppertal June 2, 2026
Gudrun Scharler Appointed CEO of Riedel Networks The Riedel Group today announced the appointment of Gudrun Scharler as CEO of Riedel N...
02/06/2026
Trust has become a commercial issue With global advertising spend forecast to exceed US$1 trillion this year*, the commercial consequences of weak governance co...
02/06/2026
June sees Ireland's cultural calendar in full bloom, as RT Supporting the Arts showcases a vibrant and wide-ranging programme spanning music, theatre, visu...
02/06/2026
After The Traitors Ireland launched in 2025, Irish audiences proved to have a taste for the global hit reality show. This Bank Holiday Monday fans can indulge e...
01/06/2026
Category line-up & sponsors announced
Photo: Paul Clarke
The Production Music Awards (PMA) have announced that submissions are now officially open ahead of...
01/06/2026
New hybrid sample/synthesis instrument revealed
Excite Audio have just released the latest instalment in their Evolve series, which has been developed in co...
01/06/2026
Latest TONEX expansion captures three rare vintage amps
The newest addition to IK Multimedia's ever-growing TONEX line-up introduces a set of three incr...
01/06/2026
Musically intelligent soft synth gets upgraded
Scaler Music will be probably be best known to many for their music theory tools, but their product range al...
01/06/2026
Rohde & Schwarz Satellite Industry Days 2026 guided by the motto From Earth to ...
01/06/2026
Luxembourg, June 1, 2026 - SES, a leading space solutions company, and Viva, Mexico's ultra low-cost airline, launched fast and reliable multi-orbit satelli...
01/06/2026
Mardi 2 juin 14h00
FilmLight (ARRI), 10 rue Ren Boulanger, 75010 Paris
Rejoignez-nous pour d couvrir comment FLAPI (l'API FilmLight) peut transformer e...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
29/05/2026
The days are getting longer, the temperatures are rising, and playlists are filling up for the season. With summer around the corner, Spotify's global edito...
Nokia Corporation Financial Report for Q2 and Half Year 2021 
