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 ...

09/10/2026

Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026

September 10 2026, 06:00 (PDT) Dolby Expands Dolby OptiView Platform with New Capabilities at IBC 2026 New Sports Intelligence helps providers better unders...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...

23/09/2026

The Crow Hill Company release Children's Choir

Includes natural and processed patches The Crow Hill Company's latest sample library captures a children's choir comprising a troupe of boys perform...

23/09/2026

Kreuzberg Audio reveal Oberton

Plug-in offers six bands of saturation Kreuzberg Audio's product range includes a selection of plug-ins and virtual instruments aimed primarily at hard-...

23/09/2026

SoundBridge 3.2.0 arrives

Latest DAW update now live SoundBridge have announced that the latest update for the remote-collaboration-focused DAW is now available. The release of Sound...

23/09/2026

Rohde & Schwarz acquires NEOSAT and PHYTRONIC and strengthens its competencies in sovereign satellite communications

Rohde & Schwarz acquires NEOSAT and PHYTRONIC and strengthens its competencies i...

23/09/2026

NHK Technologies Inc. Chooses Calrec for Sports Production

Download Now! To receive a short case study showcasing NHK Technologies, Inc. (NT) s audio setup, please enter the following details: -- First Name* Fir...

23/09/2026

Guy Martin's Proper Jobs returns for third series

A great watch - Radio Times TV's most likeable proper bloke - Daily Telegraph 23rd September 2026, London: Guy Martin returns to free streaming service...

23/09/2026

Sky Sports to show England Mens tour of South Africa as part of Cricket South Africa rights deal

Wednesday 23 September 2026 Sky Sports to show England Men's tour of South ...

23/09/2026

Comscore Partners with datafuelX to Bring Seamless Currency Adoption Into a Comprehensive Planning and Stewardship Workflow

Comscore Partners with datafuelX to Bring Seamless Currency Adoption Into a Comp...

23/09/2026

SES Appoints Michel Scholer to Board of Directors

Luxembourg, 23 September 2026 - SES today announced the appointment of Mr. Michel Scholer, Secretary General of the Luxembourg Government and Chief of Staff to ...

23/09/2026

New RT series Ceol le Chile amplifies the multicultural voices of Ireland today

RT One and RT Player, Friday 25 September Ceol le Ch ile, a new series that follows Irish artists as they collaborate with musicians from diverse background...

23/09/2026

RT true crime podcast Unsolved reveals significant new evidence in the case of missing person Philip Cairns

Available now on RT Listen New information has come to light in the case of mi...

22/09/2026

Young Journalist Award 2026: Meet the Final 12

From Malaysia to Mexico and from DR Congo to Ukraine, this year's 12 finalists for the 2026 Thomson Foundation Young Journalist of the Year award tell extra...

22/09/2026

Avalanche Tones introduce Noise Suite

Second high-gain tone plug-in released Following on from their debut release, Chainsaw Suite, Avalanche Tones have announced the launch of their second plug...

22/09/2026

LW6 wireless headphones from Lewitt Audio

Uncompressed audio with below 6ms of latency Lewitt's have just introduced their first pair of headphones which, despite being aimed primarily at studio...

22/09/2026

Neumann launch the KK 104 A & KK 105 A

Two new capsule heads for Sennheiser wireless systems Neumann have announced the upcoming launch of the KK 104 A and KK 105 A, a pair of new premium condens...

22/09/2026

Sky commissions Tupac murder trial documentary from Passion Pictures & Propagate Content

From Academy Award-winning Passion Pictures and BAFTA-winning director Marian Mo...

22/09/2026

Wi-Fi, phones and power lines: understanding EMF exposure

Whether it be from the sun or from our phones and other devices, we are all exposed to electromagnetic radiation in some shape or form. With the dramatic growth...

22/09/2026

Comscore's latest AI Intelligence Report Shows Competition Intensifying as Claude and Gemini Gain Ground on ChatGPT

Comscore's latest AI Intelligence Report Shows Competition Intensifying as C...

22/09/2026

The Factory-X Project Sets Standards for Data Sovereignty in Industry

The Factory-X Project Sets Standards for Data Sovereignty in Industry Arvato Systems Brings Digital Sovereignty to Industrial Practice Factory-X Successfully...

22/09/2026

Apple opens Apple Music Hall, a\u00A0state-of-the-art live music venue in London - PRESS RELEASE - Posted on 21 September 2026

LONDON Apple today announced the opening of Apple Music Hall, a brand-new state-...

22/09/2026

Young creativity across the island of Ireland takes centre stage as sixth RT This is Art! competition launches

RT , Creative Ireland and Shared Island Initiative ask young artists to respon...

21/09/2026

iDrumTune from RT60

Drum-tuning app now available on Android RT60 describe their iDrumTune app as the world's most advanced, accurate and intelligent system for assisting ...

21/09/2026

SoundGhost release Orbit

Innovative multiband auto-panner introduced SoundGhost's latest plug-in takes an innovative approach to auto-panning, and divides incoming signals into ...

21/09/2026

Apple Mac Studio With M5 Max: First Impressions

We check out the M5 Max-equipped model The same, but different. The new Mac Studio models feature M5 Max and M5 Ultra silicon, dramatically improving the perf...

21/09/2026

SES to Support JioStar's Broadcast Service Expansion Across India

Luxembourg/New Delhi, 21 September 2026 - SES, a leading space solutions company, and JioStar, South Asia's largest media conglomerate, today announced a ne...

21/09/2026

It's back to studio time! The TODAY show returns for its 15th season weekday afternoons on RT

Ireland's most successful and longest-running afternoon show, the TODAY Show...

21/09/2026

RT celebrates Irish Sign Language Awareness Week 2026

RT celebrates Irish Sign Language Awareness Week 2026 Special programmes across RT television, radio and online, plus special initiatives #ISL #IDSL #IWDP26...

20/09/2026

Casio Sessions returns for 2026

Piano-playing singer-songwriter competition returns for fourth year Casio have officially revealed the list of 16 finalists who have earned their place in t...

19/09/2026

ART Pro Audio reveal the RPC Series

Three new rackmount power conditioners introduced Yorkville Sound have announce the upcoming launch of three new RPC rackmount power conditioners from ART P...

19/09/2026

Colorfront Elevates Workflow Versatility at IBC 2026

September 15, 2026 AMSTERDAM, SEPTEMBER 2026 - Colorfront (colorfront.com), the Academy and Emmy Award-winning developer of high-performance cinema mastering, ...

19/09/2026

Kodak/Digital Orchard First to Market with Scanity 2

19. September 2026 News Following the successful beta test of DFT's Scanity 2 film scanner, Kodak/Digital Orchard are bringing the system into full pro...

18/09/2026

ReSing Voices Vol 2 from IK Multimedia

10 new voice models join line-up The latest expansion for IK Multimedia's AI-powered vocal-modelling software has arrived, delivering a set of 10 new vo...

18/09/2026

Museum of Synthesizers present the Arturia World Tour

A day of hands-on synthesis, sound design & performance On Saturday 26 September 2026, The Museum of Synthesisers will be hosting a full day of hands-on syn...

18/09/2026

AgileTV wraps up IBC 2026 with two industry awards

AgileTV has successfully wrapped up its participation at IBC 2026 in Amsterdam, following four days of conversations with customers, partners and industry profe...

18/09/2026

aconnic AG invites to a Virtual Investor Conference

aconnic AG (ISIN: DE000A0LBKW6), Munich, invites its shareholders and investors to a Virtual Investor Conference on Tuesday, September 29th, 2026, at 11.00 am. ...

18/09/2026

The new iPhone 18 Pro, iPhone 18 Pro Max, Apple Watch Series 12, and AirPods 5 now available to buy on Sky Mobiles award-winning network

Friday 18 September 2026 The new iPhone 18 Pro, iPhone 18 Pro Max, Apple Watch ...

17/09/2026

Image-Line & Antares reveal AutoTune Go

Popular DAW gains free pitch-correction tool Image-Line have teamed up with Antares to kit their popular DAW software out with a built-in pitch-correction p...

17/09/2026

Gibson & Baggs unveil HiFi DNA pickup

Promises unprecedented realism, dynamic nuance and clarity Gibson have teamed up with acoustic pickup experts Baggs, creating a next-generation' pickup...

17/09/2026

VSL introduce Synchron Cimbalom & World Percussion II

Two new libraries join percussion line-up VSL (Vienna Symphonic Library) have just launched two new libraries that bring some intriguing new instruments int...

17/09/2026

Arturia update the MiniFreak

Hardware & plug-in versions gain new features Arturia have just released a free update that brings some significant new features to their MiniFreak synthesi...

17/09/2026

5 Reasons to Join Calrec at IBC

Calrec brings leading audio solutions and long-term business value to IBC 2026 We're looking forward to meeting up with you all on 11-14th September in Amst...

17/09/2026

Donncha O'Callaghan competes for Ireland again in new RT adventure series

Donncha's Away Games starts this Sunday on RT One and RT Player Irish rugby legend Donncha O'Callaghan pairs up with a host of celebrities to take on...

17/09/2026

New series of Aistear an Amhrin shares extraordinary stories behind Ireland's best-loved songs

New series of Aistear an Amhr in shares extraordinary stories behind Ireland'...

17/09/2026

The Late Late Show is back! Guests include Liam Neeson, Siobhn McSweeney and the All-Ireland-winning Mayo team

The Late Late Show is back! Liam Neeson, Siobh n McSweeney, Caitr ona Balfe a...

17/09/2026

The Neighbours Effect: Gen Z Brings Back Big Hair, Double Denim and 80s soap style

The Neighbours Effect: Gen Z Brings Back Big Hair, Double Denim and 80s soap sty...

17/09/2026

Official trailer released for Sky Original WAR

The bold, new legal drama starring Dominic West and Sienna Miller launches on Sky and NOW on 2nd OctThursday 17 September 2026 Official trailer released for Sk...