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

05/01/2027

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be demoed at CES 2026

Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...

06/09/2026

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

04/08/2026

Dalet Announces Commercial Availability of Dalia, Bringing Media-Aware Agentic AI to Enterprise Productions

Dalet, a leading technology and service provider for media-rich organizations, t...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

18/06/2026

iamReverb gets an update

Improvements & new IR content iamReverb Audio have just launched a free update that kits their convolution reverb plug-in out with some new features and int...

18/06/2026

Two notes unveil Genome 2.0

Modelling suite gains improved captures, iOS support & more Two notes Audio Engineering have just announced the launch of Genome 2.0, a significant update t...

18/06/2026

VSL update Vienna Ensemble Pro 8

New AI assistance feature, video overhaul & more VSL have just announced the launch of Vienna Ensemble Pro 8.1 and 8.1V, a pair of major updates to their ev...

18/06/2026

The Great Roaming Rinse

New study reveals 10 hidden data drainers costing Brits hundreds abroad - and the holiday hotspots where you could get rinsed the mostThursday 18 June 2026 The...

18/06/2026

How to watch the 2026/27 Scottish Premiership season on Sky Sports

Thursday 18 June 2026 How to watch the 2026/27 Scottish Premiership season on Sky Sports Which matches are Sky Sports showing on the 2026/27 Scottish Premiers...

18/06/2026

Sky Sale: Latest deals now on, with discounts on iPhone Air & 2.5Gbps speeds

Thursday 18 June 2026 Sky Sale: Latest deals now on, with discounts on iPhone Air & 2.5Gbps speeds The latest deals have dropped from Sky Mobile, the award-wi...

18/06/2026

FOX Advertising and Toonstar Team to Create New Opportunities for Brands in Digital-First Animation

FOX Advertising and Toonstar Team to Create New Opportunities for Brands in Digi...

18/06/2026

Arqiva secures WTA Tier-4 accreditation

Arqiva's Crawley Court and Chalfont Grove teleports re-certified at highest World Teleport Association standard 18 June 2026, Winchester, UK - Arqiva, the ...

18/06/2026

Apple announces changes to iOS in Brazil - UPDATE - Posted on 18 June 2026

Apple today announced changes impacting iOS apps in Brazil that reflect a recent agreement with Brazil's competition regulator, the Conselho Administrativo ...

17/06/2026

SoundBridge 3.1.0 now available

New features, changes & bug fixes SoundBridge have just released another update for their remote collaboration-focused DAW - reviewed here in SOS March 2026...

17/06/2026

Fryette launch the Valvulator Mini

Valve-based front end for digital & modelling rigs The latest addition to Fryette's product range delivers a packed-down, pedalboard-friendly version of...

17/06/2026

The Biggest UK Pro Audio Show In 20 Years!

GearExpo UK - 27 June 2026 Sound On Sound are proud to announce GearExpo UK, a major new recording and music technology exhibition in London! This is the bi...

17/06/2026

Genelec introduce the 9402A System Management Device

SAM monitoring line-up gains Dante and AES67 support The latest expansion of Genelec's UNIO monitoring ecosystem introduces a new device that provides D...

17/06/2026

The R&SPR300 portable receiver from Rohde & Schwarz sets new standards in spectrum monitoring

The R&S PR300 portable receiver from Rohde & Schwarz sets new standards in spect...

17/06/2026

Elt Group and Rohde & Schwarz sign a cooperation agreement to explore commercial opportunities in electronic warfare and defense

Elt Group and Rohde & Schwarz sign a cooperation agreement to explore commercial...

17/06/2026

Two in three fans will connect to venue WiFi this World Cup, Sky Business research reveals

Wednesday 17 June 2026 Two in three fans will connect to venue WiFi this World ...

17/06/2026

Harmonic Completes Divestiture of Video Business to MediaKind

Transaction Positions Harmonic as a Pure-Play Broadband Company SAN JOSE, Calif. - June 17, 2026 - Harmonic Inc. (NASDAQ: HLIT), the worldwide leader in virtual...

17/06/2026

FOX Advertising To Launch Industry's First End-to-End Agentic Advertising Platform, Powered by FOX AdStudio

FOX Advertising To Launch Industry's First End-to-End Agentic Advertising Pl...

17/06/2026

Building resilience in an era of compounding threats

How SGN is future-proofing critical national infrastructure with Arqiva Managed Connectivity. When disruption becomes the norm As Storm Eunice tore across the ...

17/06/2026

Good Vibrations hit Dublin and Limerick as RT Concert Orchestra plays the music of the Beach Boys

The RT Concert Orchestra will bring the timeless music of The Beach Boys to aud...

16/06/2026

Thomson launches new learning App

Thomson's highly regarded expert-led online learning courses are now easier to access on the go via our new App. Available now on Google Play Store, the J...

16/06/2026

Rumble three-band soft synth by UVI

Boasts individual synths for each band UVI's latest synth takes an interesting approach to synthesis, offering a trio of synth engines that each operate...

16/06/2026

PSP Levelizer: auto level adjustment plug-in from PSPaudioware

New intelligent auto-fader plug-in unveiled PSPaudioware's latest release offers automatic level adjustment and provides more detailed control than many...

16/06/2026

The Crow Hill Company launch Crystal Pads

New performance-focused library announced Crystal Pads is the latest addition to The Crow Hill Company's ever-growing product range, and according to th...

16/06/2026

GForce launch official Prophet-5 soft synth

Developed in partnership with Sequential In recent years, GForce Software have branched into official emulations of classic hardware synths, delivering a ha...

16/06/2026

DT 30 IE: New in-ears from beyerdynamic

Designed specifically for live performance monitoring beyerdynamic's latest announcement sees the company introduce an affordable in-ear monitoring syst...

16/06/2026

Cherry Audio recreate the Ensoniq ESQ-1

Official emulation celebrates iconic synth's 40th anniversary Cherry Audio have just introduced Ensoniq ESQ-1, an official recreation of the 1986 polyph...

16/06/2026

Rohde & Schwarz achieves highest number of GCF validated 3GPP NR NTN test cases for RF, RRM and PCT domains

Rohde & Schwarz achieves highest number of GCF validated 3GPP NR NTN test cases ...

16/06/2026

Hitachi and PESA Announce Strategic Partnership to Drive Growth in Poland's Rail Market

Bydgoszcz to Become a Local Centre of Excellence for Advanced Rail Technologies....

16/06/2026

Record audiences tune in for opening weekend of ICC Womens T20 World Cup 2026 on Sky Sports

Tuesday 16 June 2026 Record audiences tune in for opening weekend of ICC Women&...

15/06/2026

Rumble from UVI

Innovative three-band soft synth introduced UVI's latest synth takes an interesting approach to synthesis, offering a trio of synth engines that each op...

15/06/2026

Oram Awards 2026: Open call announcement

Applications now open for 2026 The Oram Awards have returned for 2026 to celebrate the unusual, unique and unfiltered creative worlds of women and gender-di...

15/06/2026

PSPaudioware release PSP Levelizer

New intelligent auto-fader plug-in revealed PSPaudioware's latest release offers automatic level adjustment and provides more detailed control than many...

15/06/2026

Greater Manchester Police installs Rohde & Schwarz security scanner for custody searches

Greater Manchester Police installs Rohde & Schwarz security scanner for custody ...

15/06/2026

The New Discovery Stack: AI, Metadata and Audience Intelligence

Insights from NAGRAVISION's latest industry webinar featuring One Hungary, Liberty Global and Media Press Group In this blog, Laura Rognoni explores the k...

15/06/2026

** MEDIA ALERT ** First-Ever Official Studio Ghibli Store Opens in the U.S.

** MEDIA ALERT ** First-Ever Official Studio Ghibli Store Opens in the U.S. Fans Can Step Into the World of My Neighbor Totoro, Kiki's Delivery Servic...

15/06/2026

Sky News takes viewers inside Minab in new film investigating primary school strike in Iran

Monday 15 June 2026 Sky News takes viewers inside Minab in new film investigati...

15/06/2026

Fox Corporation to Acquire Roku, Inc.

Fox Corporation to Acquire Roku, Inc. Combination Creates a Scaled Media and Technology Platform with Superior Reach, Engagement and Monetization Capability ...

14/06/2026

Detroit Drums from Iconic Instruments

Library captures 1960s R&B/pop drum sound Following on from their recent wave of plug-in effects, Iconic Instruments have just launched an all-new virtual d...

13/06/2026

Rhythmic Filters for Devious Machines' Infiltrator

Latest expansion pack includes 252 presets Devious Machines have recently introduced another expansion for their powerful multi-effects plug-in, Infiltrator...

13/06/2026

MetaGrid Pro gains AI Builder

Create custom DAW/plug-in controllers using prompts MetaGrid have recently introduced an all-new AI Builder function to their touchscreen-based control surf...

12/06/2026

GearExpo UK: Home Studio Acoustics Talk

Simple Steps to Better Acoustics - Taming The Small Room Most of us mix in spare rooms and small spaces, where the acoustics fight us at every turn. At Gear...

12/06/2026

Meris introduce the Ottobit X

Latest addition expands vintage-inspired effects palette Meris' Ottobit pedal range draws its inspiration from vintage gaming consoles, and the latest a...

12/06/2026

Sonora Cinematic release Movimento Strings Inflections

Soundbox-based chamber strings series expanded Sonora Cinematic have just announced the launch of the second instalment in their Soundbox-based chamber stri...

12/06/2026

The Future of Studio Grading. Tokyo. 23 June 2026

With John Daro, DI Colourist at Warner Bros. Water Tower Color Tuesday 23 June, 10am-1pm or 3-6pm Restar Corporation Tokyo Register here John Daro is the ...

12/06/2026

New animated series The Grumpy Onion available in English and as Gaeilge on RT KIDSjr, RT2 and RT

Meet The Grumpy Onion Ireland's newest online sensation, all he wants is to ...