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 ...
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...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
06/03/2026
Ten years after its release, South African hip-hop artist Kwesta's DaKAR II is still making waves. With 51.8 million streams on Spotify, the album continues...
06/03/2026
06 Mar 2026
VEON and JazzWorld Advance Pakistan's Digital Financial Future ...
06/03/2026
Friday 6 March 2026
Teaser revealed for Saturday Night Live UKTurn on cookies to view this content. Go to Privacy options and select Accept All'.
Privacy...
06/03/2026
Discover how the F1 sound team turned a real Grand Prix into a cinematic experience.
Director Joseph Kosinski and his team worked directly with the Formula On...
06/03/2026
Arvato Systems Joins Initiative D21 e. V.
Shaping digital transformation together
Collaboration in Germanys largest network for the digital society
Membersh...
06/03/2026
The Trustworthy Accountability Group (TAG) is a global initiative dedicated to c...
06/03/2026
We are deeply saddened to hear the very sad news of the death of our friend and colleague, John McHugh. John was an exceptionally talented creative leader who s...
06/03/2026
First exclusive look at RT 's promo as Ireland prepare to take on Czechia
Every Moment, Every Generation
https://youtu.be/2ijo96EadLU
36 years after Geor...
05/03/2026
A little over a year ago, Spotify introduced the quarterly Creator Milestone Awa...
05/03/2026
Rohde & Schwarz enables rapid validation of next-gen Wi-Fi 8 networking platform...
05/03/2026
Rohde & Schwarz acquires Software Radio Systems (SRS), specialists in software d...
05/03/2026
5. March 2026 Radmila Stoltz
In March, Reimagining DAM 2026 will welcome an extraordinary group of industry leaders who are defining the next era of Digital...
05/03/2026
Celebrating 21 Years of the RT Choice Music Prize
RT Choice Music Prize
In association with IMRO and IRMA
RT Choice Music Prize Irish Album of the Year 2...
05/03/2026
Thursday 5 March 2026
Sky News secures ninth News Channel of the Year award as ...
05/03/2026
Thursday 5 March 2026
Sky Sports launches first ever nationwide creator competi...
05/03/2026
SAN JOSE, Calif. - March 5, 2026 - At the 2026 NAB Show, Harmonic (NASDAQ: HLIT)...
05/03/2026
Comscore and Yahoo DSP Partner to Advance CTV Political Advertising with Proximi...
04/03/2026
For many fans, a song's backstory can be just as compelling as the final pro...
04/03/2026
In 2006, Spotify was founded on the belief that technology could bring artists a...
04/03/2026
Spotify is back on the ground for the Houston Livestock Show and Rodeo, and we&#...
04/03/2026
Spotify had an energizing week in Sydney, Australia, filled with powerful conver...
04/03/2026
Earlier this year, we launched Directed By, a documentary-style series that pull...
04/03/2026
KT and Rohde & Schwarz to showcase AI-enhanced radio transmission performance In a joint 6G AI proof-of-concept demonstration, the CMX500 one-box tester from ...
04/03/2026
Luxembourg, 3 March 2026 - SES S.A. has today published its 2025 Annual Report, following the announcement of the company's full year financial results for ...
04/03/2026
Luxembourg, March 3, 2026 - SES, a leading space solutions company, along with I...
04/03/2026
04 Mar 2026
VEON Partners with GSMA Innovation Fund to Accelerate Digital Innov...
04/03/2026
04 Mar 2026
VEON's Beeline Uzbekistan and Rakuten Symphony Partner for Open...
04/03/2026
Wednesday 4 March 2026
Sky Sports unveils plans for 2026 Formula 1 coverage
Sky Sports is preparing for one of the most highly anticipated F1 seasons in recen...
03/03/2026
For many, finding time or headspace to pick up a book can feel out of reach, but...
03/03/2026
Rohde & Schwarz and Realtek demonstrate first test solution for Bluetooth LE Hi...
03/03/2026
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({ content_source:......
03/03/2026
Luxembourg, 2 March 2026 -- SES S.A. fully consolidates Intelsat from 17 July 2025 and announces financial results for the year ended 31 December 2025
FY25 Pe...
03/03/2026
RT is proud to support a rich and diverse programme of arts and cultural events taking place across Ireland throughout March 2026. This month brings a remarkab...
03/03/2026
03 Mar 2026
VEON and MeetKai Expand Collaboration to Explore Sovereign AI Infra...
03/03/2026
Tuesday 3 March 2026
Sky releases official trailer for The Miniature Wife, a Sk...
03/03/2026
Tuesday 3 March 2026
Ryan Reynolds and Rob Mac land first ever live commentary ...
03/03/2026
Tuesday 3 March 2026
The Dyers' Caravan Park reopens for a second season after a hit launch on Sky
The Dyers' Caravan Park
JPEG (510KB)
Sky books a ...
03/03/2026
Harmonic's cOS Virtualized Broadband Platform Simplifies Network Operations, Lowers Hardware Dependency and Enables Seamless DOCSIS and Fiber Growth SAN JO...
03/03/2026
Comscore to Announce Fourth Quarter and Full Year 2025 Financial ResultsRESTON, VA, March 3, 2026 Comscore, Inc. (Nasdaq: SCOR), a trusted partner for plannin...
03/03/2026
Self-taught on iMovie, Hanagami transitioned to Final Cut Pro in 2009, discovering that professional tools could give him full creative control over how his wor...
03/03/2026
RT Media Sales has announced Spry Finance has renewed it's sponsorship of M...
02/03/2026
Rohde & Schwarz demonstrates FR1-FR3 carrier aggregation, advancing 6G readiness Rohde & Schwarz and Qualcomm Technologies, Inc. have reached another pivotal ...
02/03/2026
aconnic AG (ISIN: DE000A0LBKW6), Munich, and Arqit Quantum Inc. (Nasdaq: ARQQ, A...
02/03/2026
Luxembourg, February 26, 2026 - SES and Africa Mobile Network (AMN) have expande...
Nokia Corporation Financial Report for Q2 and Half Year 2021 
