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
23/12/2025
The year is winding down, the weather outside is frightful, and it's the perfect time to escape into a story that warms the heart. For listeners looking for...
23/12/2025
23 Dec 2025
VEON's Beeline Kazakhstan and Rakuten Symphony Collaborate to A...
22/12/2025
For a decade, popular German podcast Fest & Flauschig has hosted an annual Chris...
22/12/2025
Monday 22 December 2025
Sky extends PGA TOUR partnership until 2029, as Sky Spo...
22/12/2025
Siobh n McSweeney, Rory McIlroy, Elon Musk, Catherine Connolly, Jim Gavin, Ivan Yates and Traitor Paudie Moloney lead new characters for Callan Kicks the Year 2...
22/12/2025
Winner announced in the picturesque surroundings of Wicklow's Avondale Tower and Treetop Walk
Andrew Trimble wins the show in his first series as coach
Th...
22/12/2025
The 2025 winners have been announced today, Sunday 21 December, for Ireland's largest choral competition Choirs for Christmas hosted by RT lyric fm.
Ove...
21/12/2025
John Shortt named Young Sportsperson of the Year Kerry are the Team of the Year
...
19/12/2025
With Playout Release 2025.4, ToolsOnAir continues to push professional playout w...
19/12/2025
19 Dec 2025
VEON's Mobilink Microfinance Bank Launches Islamic Banking Oper...
19/12/2025
The six-part drama, set in a close-knit Welsh town fractured by an unspeakable c...
19/12/2025
Rohde & Schwarz drives the future of mobility at CES 2026 At the 2026 Consumer Electronics Show in Las Vegas, Rohde & Schwarz will present a powerful lineup o...
19/12/2025
RT is proud to return to the RDS to support the 2026 Stripe Young Scientist & T...
18/12/2025
Canada's largest indoor arena has transformed its live production capabilities with a full ST 2110 infrastructure and Calrec's compact Argo S console. S...
18/12/2025
Long-term agreement includes the SES SCORE platform and hybrid distribution worldwide to deliver more than 5,000 hours of golf tournaments annually featuring th...
18/12/2025
18 Dec 2025
VEON Upgraded to Nasdaq Global Select Market, Enhancing Investor Visibility Dubai, December 18, 2025 - VEON Ltd. (Nasdaq: VEON), a global digital o...
18/12/2025
Thursday 18 December 2025
Sky Sports remains the exclusive home of the Masters ...
18/12/2025
Using the additive process of 3D printing, layer after layer gets printed until an object is as close to the final shape needed as possible. Historically, machi...
18/12/2025
In 2025, RT proudly supported 185 arts and cultural events across the island of Ireland, reflecting significant growth since the scheme was re-launched in 2014...
18/12/2025
RT Sports Awards 2025 live on RT One and RT Player at 8:05pm on Saturday 20 December
On Saturday 20 December live on RT One and RT Player at the earlier t...
18/12/2025
RT lyric fm presents a very special Winter Solstice edition of Ambient Orbit, l...
18/12/2025
At 7.45pm on 1st January 1926, the precursor to RT , then 2RN, delivered the fledgling new Irish state's first public radio transmission. From those first c...
18/12/2025
December 18 2025, 05:30 (PST) The Movie Experience SLO Becomes First U.S. Exhib...
17/12/2025
Investigative journalists across the Western Balkans and T rkiye continue to con...
17/12/2025
The right playlist is essential on New Year's Eve, building the energy as you get ready and keeping it high as you count down to midnight. This year, Spotif...
17/12/2025
eds3_5_jq(document).ready(function($) { $(#eds_sliderM519).chameleonSlider_2_1({...
17/12/2025
Wuppertal December 17, 2025
Riedel Builds Global Communication and Commentary ...
17/12/2025
December 17 2025, 17:00 (PST) Dolby and LG Unveil a New Era of Home Audio With ...
17/12/2025
Wednesday 17 December 2025
Heated Rivalry will be coming to Sky and streaming service NOW on 10 JanuaryTurn on cookies to view this content. Go to Privacy opti...
17/12/2025
RT has announced that Kathy Fox has been appointed Commissioning Editor with re...
17/12/2025
With the new season of Dancing with the Stars shimmering in the not-too-distant future this New Year, the celebrity and dancer pairings of the twelve couples ha...
16/12/2025
Hawkins has landed on Spotify, just in time for Stranger Things Season 5, Volume...
16/12/2025
Wherever you are, your favorite music and audio content should go seamlessly with you. That's why Spotify has partnered with NAVER Corp, Korea's leading...
16/12/2025
2025 Wrapped arrived bigger and bolder than ever. This year's experience is designed to be ultra personal and shareable, with new features like Wrapped Part...
16/12/2025
16 Dec 2025
VEON Announces Release Date for Full Year and Fourth Quarter 2025 R...
16/12/2025
16 Dec 2025
VEON's Kyivstar Invests in Renewable Energy in Ukraine with Acq...
16/12/2025
Harmonic's XOS Advanced Media Processor Improves Streaming Video Quality and Boosts Viewer Engagement SAN JOSE, Calif. - Dec. 16, 2025 - Harmonic (NASDAQ: ...
16/12/2025
RT Sport Awards 2025 live on RT One and RT Player at 8:05pm on Saturday 20 December.
On Saturday 20 December live on RT One and RT Player at the earlier t...
16/12/2025
Singer -songwriter Brian Kennedy has been announced as the final celebrity dance...
15/12/2025
Cape Town, November 13, 2025 - SES and International artist and humanitarian, Fo...
15/12/2025
Luxembourg, December 15, 2025 - SES, a leading space solutions company, and Abra Group launched fast and reliable multi-orbit inflight connectivity service on t...
15/12/2025
15 Dec 2025
VEON's Beeline Kazakhstan Delivers First Starlink Direct to Cel...
15/12/2025
Andrew Mountbatten-Windsor finds himself the topic of year's cracker jokes
Oasis, David Harbour, Celebrity Traitors and Angela Rayner all feature in this y...
15/12/2025
Comscore Expands Cross-Platform Campaign Measurement to Include Audio and Social New capabilities strengthen cross-platform campaign reporting suite; CCR rebran...
15/12/2025
RT .ie has reached one billion page views this year and is on track to finish 2025 2% ahead of last year. Average time spent on the site is up 3% on 2024, with ...
12/12/2025
Last month, Spotify announced a new collaboration with the ATP Tour, the global governing body of men's professional tennis, aimed at bringing the next gene...
12/12/2025
Friday 12 December 2025
Ted is back! Seth MacFarlane's live-action comedic ...
12/12/2025
Uachtar n na h ireann, Catherine Connolly visited RT Raidi na Gaeltachta's...
12/12/2025
Ireland AM host Eric Roberts has been revealed as the sixth contestant taking to...
Nokia Corporation Financial Report for Q2 and Half Year 2021 
