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

Most recent headlines

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...

25/09/2026

Study: Only 10% of Young Adults Watched Local TV News Last Week

Share Copy link Facebook X Linkedin Bluesky Email...

25/09/2026

Optimum, A+E Global Media Sign New Distribution Agreement

Share Copy link Facebook X Linkedin Bluesky Email...

25/09/2026

MPA, Unions Back 'Motion Picture, Television, and Entertainment Revitalization Act

Share Copy link Facebook X Linkedin Bluesky Email...

25/09/2026

NAB Show New York Announces More Speakers and Programming Highlights

Share Copy link Facebook X Linkedin Bluesky Email...

25/09/2026

Comcast NBCU, NBCUniversal Local Award $2.5 Million to Nonprofits

Share Copy link Facebook X Linkedin Bluesky Email...

25/09/2026

Orange Belgium Strengthens Its Consumer and B2B TV Servic...

Long-Standing Customer Renews Multiyear Contract for VO's Secure Video Player, Content Security, and Device Monitoring Solutions Viaccess-Orca (VO), a glob...

25/09/2026

Automate Video Progress Bars in After Effects - No Keyframes!

Automate Video Progress Bars in After Effects - No Keyframes! Graham Quince September 24, 2026 0 Comments Learn how to create an automated video playb...

24/09/2026

Broadcast Management Group Assists Virginia Public Media With Move to New HQ in Richmond

Broadcast Management Group (BMG) is supporting Virginia Public Media (VPM), the ...

24/09/2026

Two Red Digital Cinema Cameras Receive GhostFrame Pro Certification

RED Digital Cinema's RED V-RAPTOR [X] and RED V-RAPTOR XL [X] cameras with the Phantom Track feature are the first cameras to receive GhostFrame Pro Certifi...

24/09/2026

FOX Sports Adds 4K Live Stream on Tubi to List of Available Options for Cowboys-Eagles on Thanksgiving Day

Bringing together the full family of networks, FOX Sports is also adding Tubi, F...

24/09/2026

Virginia Techs Lane Stadium Invests in Gameday Experience with New Daktronics LED Display, Audio Solutions

Virginia Polytechnic Institute and State University (Virginia Tech) has unveiled...

24/09/2026

SVG AI Innovation Lab Blog Tracks How AI Is Reshaping Live Sports Production

The blog collects SVG's reporting on AI across U.S. and European sports broadcasting Since SVG launched the AI Innovation Lab in April to advance the devel...

24/09/2026

SVG TranSPORT Keynote Conversation: How FOX Built a Transcontinental Transmission Backbone for the FIFA World Cup

SVG's annual TranSPORT conference, which will be held on Tuesday, Oct. 20 in...

24/09/2026

FloSports is Using AI To Build a New Generation of Live Production Tools to Bolster the Streamer's Internal Operations

The self-built Master Control Room has cut streaming operations incident-respo...

24/09/2026

Ortana Links AudioShake, ScorePlay for Live and Archive Audio Cleanup

Ortana Media Group, the software systems integrator behind the Cubix workflow platform, has connected AudioShake's audio separation models to ScorePlay thro...

24/09/2026

AudioShake Debuts Multi-Speaker 2.0 for Separating Overlapping Voices

AudioShake has released Multi-Speaker 2.0, the company's newest Multi-Speaker model, which removes 75% more noise and offers 32% better separation of overla...

24/09/2026

Op-Ed: Planning Media Day When the Calendar Isn't Certain - How MLB Clubs Can Prepare for 2027 Now

By Jon Morgan, Founder and Executive Producer, Ryval Studios For Major League B...

24/09/2026

Spectrum SportsNet Reveals Los Angeles Lakers Broadcast, Programming Schedule for the 2026-27 Season

Spectrum SportsNet has revealed its comprehensive programming and live game broa...

24/09/2026

Charlotte Hornets Ink Broadcast Deals With Gray Media, Sinclair to Bring Games to More Fans Across the Carolinas

The Charlotte Hornets has unveiled new broadcast partnerships with Gray Media an...

24/09/2026

Detroit Pistons Name DAZN as Exclusive DTC Streaming Platform

DAZN will be the exclusive direct-to-consumer streaming partner for the Detroit Pistons beginning with the 2026-27 season. Subscriptions are available at DAZN.c...

24/09/2026

Minnesota Wild Games Become Available to Spectrum Customers

The National Hockey League (NHL) has made an agreement with Spectrum that will allow Spectrum TV customers in the Minnesota Wild local broadcast territory to wa...

24/09/2026

Carolina Hurricanes, Spectrum Sign Multi-Year Agreement for Hurricanes Hockey Network Distribution

The Carolina Hurricanes has reached a multi-year distribution agreement to provi...

24/09/2026

Regional Games of the St. Louis Blues To Be Exclusively Broadcasted on Blue Note+

The St. Louis Blues has introduced Blue Note as the name of the new, exclusive ...

24/09/2026

Columbus Blue Jackets Games Head to Spectrum TV

Blue Jackets Hockey Network, the television home for Blue Jackets hockey, is coming to Spectrum TV under a new carriage agreement between the National Hockey Le...

24/09/2026

Waves introduce Tracks Live 2.0

The next generation of multitrack recording for live sound The latest version of Waves' dedicated live multitrack recording software delivers an array ...

24/09/2026

Polyend introduce the Loop

An idea machine for musicians Described as an idea machine for musicians , the latest addition to Polyend's growing collection of guitar pedals combin...

24/09/2026

Synchro Arts unveil VocAlign 7

Alignment tool gains multitrack layout Synchro Arts have just launched the latest version of their renowned time-alignment plug-in, and it's said to be ...

24/09/2026

Expressive E update the Osmose

Synth gains DAW Control & Ctrl-e integration Expressive E have just released a major firmware update that brings some interesting new features to the Osmose...

24/09/2026

Rohde & Schwarz expands its system amplifier portfolio with the R&SSAM200 for applications up to 53 GHz

Rohde & Schwarz expands its system amplifier portfolio with the R&S SAM200 for a...

24/09/2026

Hitachi Launches Startup Challenge, Calling on Innovators Worldwide to Shape the Future of Mobility and Manufacturing Solutions

September 24, 2026 The Hitachi Startup Challenge FY26 invites innovative startu...

24/09/2026

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...

24/09/2026

Manifold Technologies Appoints Ryhaan Williams as CCO for North America

Manifold Technologies Appoints Ryhaan Williams as CCO for North America Brie Clayton September 24, 2026 0 Comments Brings three decades of broadcast e...

24/09/2026

UNIFACHA Expands Educational Program with DaVinci Resolve Studio

UNIFACHA Expands Educational Program with DaVinci Resolve Studio Brie Clayton September 24, 2026 0 Comments Brazilian university empowers next generat...

24/09/2026

NABA To Convene Cyber University 2.0 To Address Cybersecurity Strategies

Share Copy link Facebook X Linkedin Bluesky Email...

24/09/2026

Big Blue Marble Makes the Origin of Austrian Parliament V...

Viewers watching videos from the Austrian Parliament online will soon find it easier to verify the authenticity of the content. Big Blue Marble, an internationa...

24/09/2026

nsign and Sony collaborate to simplify digital signage de...

nsign, the digital signage SaaS platform built around its Simplify Complexity principle, is now officially certified for BRAVIA Professional Displays from Son...

24/09/2026

Viaplay Selects Encompass Altitude Scheduling to Transfor...

Encompass Digital Media today announced the successful migration of multiple Viaplay free-to-air channels, including TV3, TV6, TV8 and TV10, to its Altitude Sch...

24/09/2026

Standalone Streaming Services Continue to Decline in the U.S.

Share Copy link Facebook X Linkedin Bluesky Email...

24/09/2026

Hollyland Unveils LARK M3 Wireless Audio System

Share Copy link Facebook X Linkedin Bluesky Email...

24/09/2026

Adobe Completes Purchase Of Topaz Labs

Share Copy link Facebook X Linkedin Bluesky Email...

24/09/2026

FCC to Vote on Satellite Spectrum, Unlicensed Ultra-Wideband Devices

Share Copy link Facebook X Linkedin Bluesky Email...

24/09/2026

LYNX Technik Launches New Series 5000 Card

Share Copy link Facebook X Linkedin Bluesky Email...

24/09/2026

KRK V SERIES MONITORS HELP INDUSTRY VETERAN SANTIAGO URI...

Music Supervisor, Composer, and Mixing Engineer Santiago Uribe has built a career around producing music for film and television, contributing to more than 40 p...

24/09/2026

NABA Cyber University to Convene Broadcast Industry Leade...

The North American Broadcasters Association (NABA) will hold a full-day cybersecurity summit focused on defending against growing cyber threats facing the broad...

24/09/2026

UKTV COMMISSIONS EIGHTH SERIES OF CANAL BOAT DIARIES

London, 24th September 2026: UKTV has commissioned an eighth series of Canal Boat Diaries (8x60') for U (u.co.uk) and U&YESTERDAY, with waterways explorer R...

24/09/2026

Tribeca Festival And AT&T Open Submissions For 10th Anniversary AT&T Untold Stories Program, Featuring $1.2 Million Production Prize

September 24th, 2026 TRIBECA FESTIVAL AND AT&T OPEN SUBMISSIONS FOR 10TH ANNIVE...