Sony Pixel Power calrec Sony

Nokia Corporation Financial Report for Q2 and Half Year 2021

29/07/2021

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
LINK: https://www.nokia.com/about-us/news/releases/2021/07/29/nokia-corporat...
See more stories from nokia

Europe Stories

16/09/2021

Our Fashion Week Round-Up of Fashion & Beauty Work Across Technicolor Creative Studios

Discover Luna Rossa Ocean, the New Fragrance by Prada Mikros MPC teams provided ...

16/09/2021

September 2021 Update to Emtree(R) Now Available on STN

The latest version of the Emtree thesaurus launched in Embase on STN on September 12, 2021. Emtree remains a great resource for the latest terminology in biomed...

16/09/2021

Sky Studios and Birmingham Repertory announce final writers for Sky Comedy Rep

Partnership between Sky Studios and Birmingham Repertory Theatre aims to discover and develop new comedy writing talent from across the UK Over 750 people app...

16/09/2021

Cross-industry CEO Alliance backs EU plan to cut carbon emissions by 55% by 2030

Home News & Press Releases Spokespeople Assets Blog Contact us Cross-industry CEO Alliance backs EU plan to cut carbon emissions by 55% by 203...

16/09/2021

Schneider Electric launches GenieEvo Connected - Air-Insulated Switchgear with Scalable Connectivity

Home News & Press Releases Spokespeople Assets Blog Contact us ...

16/09/2021

Schneider Electric reaches number 1 spot for sustainability in its sector by ESG rating agency Vigeo Eiris

Home News & Press Releases Spokespeople Assets Blog Contact us ...

16/09/2021

Rohde & Schwarz work to promote technology and solutions in the Americas following NAB withdrawal

Rohde & Schwarz work to promote technology and solutions in the Americas followi...

16/09/2021

Riedel Intercom Systems Give Brooklyn's Renowned BRIC Arts Media Agility in Managing Productions and Events

Wuppertal September 16, 2021 Riedel Intercom Systems Give Brooklyn's Renow...

16/09/2021

It's A Sin wins New Drama at the National Television Awards

It's A Sin won in the New Drama category at the National Television Awards. Star of the show, Olly Alexander said when accepting the award: Thank you so ...

16/09/2021

Is Your New Smart Oven Really Smart or a Handy Door Through Which Hackers Gain Entry?

By Tim Pearson, Senior Director, Product Marketing I recently visited a friend&...

16/09/2021

ITN pays tribute to former ITV News editor Geoff Hill

ITN today pays tribute to former ITV News Editor Geoff Hill, who has passed away following a long period of illness. A highly talented and passionate journalis...

16/09/2021

From Company 3: Company 3 London hires world renowned Colourist Jean-Clment Soret and Executive Producer Ellora Soret

Company 3 have announced the hire of world-renowned Colourist Jean-Cl ment Soret...

16/09/2021

Well-oiled machine in the Formula 1 circus

Well-oiled machine in the Formula 1 circus Broadcast Rental feels at home on Circuit Zandvoort From 2016 Broadcast Rental company has had strong ties with the...

16/09/2021

LEGENDARY CEO, PRODUCER, AND WRITER SHONDA RHIMES TO KEYNOTE BRIGHTCOVE PLAY 2021'

All Press ReleasesShare All Press Releases LEGENDARY CEO, PRODUCER, AND WRIT...

16/09/2021

Banijay Italia Scores First International Version of Star in the Star

Banijay today confirms Canale 5 has commissioned Banijay Italia to produce a primetime run of Star in the Star. This marks the first international adaptation of...

16/09/2021

Arts Alliance Media Powers San Sebastian International Film Festival for the Seventh Consecutive Event

Arts Alliance Media (AAM), the global leader in digital cinema software and supp...

16/09/2021

The Poisoning: an AFP documentary podcast on the Navalny saga

Alexei Navalny is arguably the most divisive figure in Russian politics, and certainly President Vladimir Putin's most determined and well-known opponent. H...

16/09/2021

When disaster strikes, head to the cloud

Imagine Communications Michael Rebel explains why replicating a primary playout centre in the cloud can helps broadcasters if disaster strikes By Contributor ...

16/09/2021

SONY WORLD PHOTOGRAPHY AWARDS 2022 JUDGES AND UPCOMING EXHIBITION DATES ANNOUNCED

The World Photography Organisation is delighted to announce the judging panel fo...

16/09/2021

MovieLabs publishes Ontology for Media Creation

The conceptual framework and set of defined terms enable both people and software to communicate with greater data interoperability By Jenny Priestley Publish...

16/09/2021

DAZN possibly' interested in acquiring BT Sport

Kevin Mayer told the RTS Cambridge Convention Mayerits really quiet in terms of talks around a potential acquisition of the broadcaster By Jenny Priestley Pub...

16/09/2021

News UK to launch new TV channel

talkTV will offer a mix of programming including hourly news bulletins, sports and entertainment shows as well as current affairs, debate, opinion and documenta...

16/09/2021

Allen Broome appointed MediaKind CEO

Broome has been with the company for the last two years leading the research and development team as CTO By Jenny Priestley Published: September 16, 2021 Br...

16/09/2021

REMI to the rescue for Broadcast Management Group

REMI to the rescue for Broadcast Management Group posted: 16/09/2021 REMI refers to remote production via centralized IP technology, enabling decent...

16/09/2021

EE and ITV unveil latest store opening on the cobbles of Coronation Street, in new partnership

EE and ITV unveil latest store opening on the cobbles of Coronation Street, in n...

16/09/2021

ITV Studios inks co-production deal with Tencent Video for the landmark natural history series A Year on Planet Earth

ITV Studios inks co-production deal with Tencent Video for the landmark natural ...

16/09/2021

ITV detective drama, Grace, begins filming in Brighton

[Left to right - Zoe Tapper, John Simm and Richie Campbell] ITV detective drama, Grace, begins filming in Brighton ITV detective drama, Grace, begins filming ...

16/09/2021

Barco announces start of Share Buyback Program to replenish pool of shares for stock options

Barco announces start of Share Buyback Program to replenish pool of shares for s...

15/09/2021

VEON's Beeline wins three Ookla Speedtest awards for its mobile network in Uzbekistan

Beeline Uzbekistan awarded Best Mobile Network, Fastest Mobile Network and Best ...

15/09/2021

UKTV's Dave and W announce brand-new factual commissions

15 September 2021 UKTV today announces two brand-new factual series including Nurses on the Ward (10x60) for W and Special Ops: Crime Squad UK (10x60) for Dave....

15/09/2021

Tune in for the Newest Pop Culture, Music, and Playlist-Inspired Shows on Spotify Greenroom

Spotify Greenroom is now available to listeners in over 135 markets around the w...

15/09/2021

Carbon commentators: Sky teams up with Jamie Redknapp & Mark Wright to help spur families towards the goal of zero carbon emissions

New short film launched as part of Sky Zero and #GameZero, Sky's partnership...

15/09/2021

Nokia and Uniti Group Retailers make ubiquitous Wi-Fi a reality for Australian homes

Nokia and Uniti Group Retailers make ubiquitous Wi-Fi a reality for Australian h...

15/09/2021

Nokia and ATU to speed up digital transformation and the knowledge economy in Africa

Nokia and ATU to speed up digital transformation and the knowledge economy in Af...

15/09/2021

ITN submits its response to the Governments consultation into a change of ownership of Channel 4

ITN has today (15th September 2021) submitted its response to the government'...

15/09/2021

Take five with Simon

Posted on 15 Sep 2021 Get to know one of ICGs latest recruits in the next instalment of our Take five with... series. Simon Mynott joined as Junior Web Devel...

15/09/2021

netplus.ch Selects Agama for Its Network Monitoring and Analytics

15 September, 2021 Press releases (Link ping, Sweden, September 15, 2021) - Agama Technologies, the specialist in video service quality and customer experienc...

15/09/2021

Adobe Announces Payment Services for Adobe Commerce

-- SAN JOSE, Calif.--(BUSINESS WIRE)-- Adobe (Nasdaq: ADBE) today announced the upcoming availability of Payment Services for Adobe Commerce, the industry'...

15/09/2021

NAB Show 2021 has been cancelled

The association has announced that due to challenges related to the Delta variant of Covid, it can no longer effectively host next months in-person events in La...

15/09/2021

Nadine Dorries appointed UK culture secretary

Former Im A Celebrity... contestant takes over DCMS top job, John Whittingdale out as minister for media and data By Jenny Priestley Published: September 15, ...

15/09/2021

RT and TG4 unite to bring Irish audiences over 150 hours of rugby action free-to-air

Coverage kicks-off on RT and TG4 on September 24 | Connacht, Munster and Leinst...

15/09/2021

Dowden: Channel 4 remaining public would be act of self harm'

Culture secretary to lay out reasoning behind Channel 4 privatisation in speech to RTS Cambridge Convention By Jenny Priestley Published: September 15, 2021 ...

15/09/2021

Virgin Media boosts digital ad strategy with Google Ireland

Irelands leading commercial broadcaster has partnered with Google Ireland on what is described as a first-of-its-kind integration of Pause Ads for Google Ad Man...

15/09/2021

SES-17 to launch on 22 October

Built by Thales Alenia Space, the SES satellite will deliver high-speed connectivity services to mobility, enterprise and government segments across the America...

15/09/2021

RT SHORT STORY COMPETITION 2021: SHORTLIST ANNOUNCED

Life, death and zoom calls, culture clashes and suburban turf wars, success, failure, and love through the ages are among the themes which feature at the centre...

15/09/2021

Pebble announces new configurations and a new brand for their remote monitoring and control tool.

Pebble announces new configurations and a new brand for their remote monitoring ...