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 ...
07/10/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
08/09/2026
Built for rap producers, by rap producers
Sauceware Audio, the independent plug-in company founded by Grammy-nominated producer Jacob (Travis Scott, 21 Sava...
08/09/2026
Classic Sound Techniques design revived
Warm Audio's latest release delivers a meticulous recreation of the preamp circuitry employed by the Sound Techn...
08/09/2026
Latest soft synth inspired by the Memorymoog
XILS Lab have just launched a software instrument that draws its inspiration from Moog's iconic Memorymoog,...
08/09/2026
Tuesday 8 September 2026
Sky Go gets a major upgrade for Sky Glass and Sky Stream customers
Today, Sky launches a new version of the Sky Go app for Sky Glass ...
08/09/2026
Documentary thriller simulating a Russian attack on UK soil will culminate in a live final episode reuniting the playersTuesday 8 September 2026
Trailer releas...
08/09/2026
Tuesday 8 September 2026
Jamie Demetriou and Amelia Dimoldenberg to host next t...
08/09/2026
Wuppertal September 8, 2026
Riedel Introduces New OnAir Headset PlatformRiedel Communications today announced the launch of its new OnAir headset platform, a...
08/09/2026
BERLIN, September 8, 2026 - J nger Audio will introduce a major expansion of its flexAI audio processing platform at IBC 2026. The flexAI system adds autonomous...
08/09/2026
New Vendor-Agnostic Broadband Intelligence Fabric Reduces Operational Complexity and Improves Service Quality for Broadband Service Providers SAN JOSE, Calif. -...
08/09/2026
Arvato Systems Brings TI Expertise to the Stage
Panels, workshops, and real-world examples at the TI-SUMMIT 2026
Arvato Systems, a partner of the TI-SUMMIT 2...
08/09/2026
On October 1, Apple Arcade is rolling out a lineup of fun new games for players ...
07/09/2026
Two new full-range, flat-response cabinets introduced
HeadRush have recently introduced a pair of new full-range, flat-response cabinets designed for player...
07/09/2026
Answering questions about AI in game audio
GameSoundCon, the largest professional conference for video game music and sound design, have announced that they...
07/09/2026
New directional headset mic on show at IBC
Just ahead of this week's IBC show, DPA have announced the launch of a new directional headset that's bee...
07/09/2026
We are not building systems to replace human decision-making; we are building systems that execute our decisions at machine speed. The media companies that win ...
07/09/2026
Monday 7 September 2026
Freddie Meredith joins cast of SNL UK ahead of start of Season 2
Freddie Meredith Images
ZIP (3MB)
Saturday Night Live UK announces ...
07/09/2026
Monday 7 September 2026
Sky and NFTS team up to launch new routes into screen careers
Sky has today announced a new apprenticeship programme, with application...
07/09/2026
Monday 7 September 2026
Sky Sports announces most comprehensive NFL coverage to...
07/09/2026
Dolby, MainConcept, Techex and J nger Audio will showcase the industry's first demonstration of Serial Audio Definition Model (S-ADM) in a cloud-based produ...
07/09/2026
dB Broadcast will showcase APIS Hive, its software platform for designing, deploying and managing modern broadcast infrastructures, at IBC 2026.
Developed from...
07/09/2026
552,000 streams on RT Player
The historic fight, which saw Katie Taylor become...
06/09/2026
Recreates Rolands TB-303 & MC-202
BS-203 MacroAcidizer is the first virtual instrument from Born Second, and it offers a recreation of two Roland classics -...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
05/09/2026
MK2 & Bass system control app improved
HEDD Audio have just launched a new and improved version of the control software that pairs with their MK2 and Bass m...
04/09/2026
Media organisations interested in the Media Innovation Europe 3.0 Business Innovation Synergizer (BIS) can now consult a new FAQ document providing additional a...
04/09/2026
Powerful new soft synth announced
Traveler is the first software instrument to be released by KeySolutions Sounds, and it's an ambitious one! Said to co...
04/09/2026
Free virtual instrument range expanded
The latest expansion of e-instruments' free Fragments series introduces a packed-down version of the company'...
04/09/2026
Company recognised for second time
Two years after winning an Engineering, Science & Technology Emmy Award for dxRevive Pro, Accentize have been recognised ...
04/09/2026
Bilbao - 3rd September 2026 -AgileTV, a leading provider of end-to-end TV and vi...
04/09/2026
RT ANNOUNCE NEW DRAMA THE MURDER OF MR. MOONLIGHT
BASED ON THE DISAPPEARANCE...
03/09/2026
Yospace will be at IBC from 11th - 14th September (booth 5.C78). For more inform...
03/09/2026
Create musical synth bass sounds from scratch
Anthony Marinelli Music have recently announced the launch of Bass DNA, a new online course that teaches music...
03/09/2026
Most powerful Tonex hardware to date
IK Multimedia's latest release introduces their most advanced Tonex hardware unit to date, combining their AI Machi...
03/09/2026
Upmix & downmix software upgraded
Penteo Audio Plugins have announced that the latest version of their powerful upmix and downmix software is now available....
03/09/2026
With the start of the new apprenticeship year, young talent has once again begun their professional careers at SGL Carbon's sites in Germany. Recently, the ...
03/09/2026
With the industry increasingly embracing hybrid, software-defined production models, Calrec will preview a series of Argo and ImPulseV software enhancements at ...
03/09/2026
Thursday 3 September 2026
Jeff Goldblum announced as host of Saturday Night Liv...
03/09/2026
Wuppertal September 3, 2026
Gonshiro Strengthens Collaboration With Riedel, AR...
03/09/2026
Comscore Expands Its AI Intelligence to Measure Sponsored Chat Advertising and I...
03/09/2026
First Class Takes is a new six-part series for RT KIDS that captures funny, hon...
02/09/2026
Combines the Phat Drive with high-voltage valve circuit
The latest pedal from Keeley Electronics combines their popular Phat Mode drive pedal with an all-ne...
02/09/2026
Free version of virtual mixing room plug-in introduced
Lewitt's Space Replicator plug-in provides users with a virtual monitoring environment that aims ...
02/09/2026
Two new mixing & mastering plug-ins revealed
AIR Music Tech have just introduced the Stereophonic Bundle, a pair of processing plug-ins designed to provide ...
02/09/2026
Rohde & Schwarz has achieved initial verification of 3GPP Rel. 17 power-saving f...
02/09/2026
Bilbao - 3rd September 2026 -AgileTV, a leading provider of end-to-end TV and vi...
02/09/2026
Why agentic media supply chains need experience design built around visibility, reversibility and human authority
When AI can generate a functional interface ...
02/09/2026
Wednesday 2 September 2026
Sky News revamps Sunday morning show with rotating l...
Nokia Corporation Financial Report for Q2 and Half Year 2021 
