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 ...

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...

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...

29/07/2026

Brightline Unveils Compact, Suspended MOD1 LED Light

Share Copy link Facebook X Linkedin Bluesky Email...

29/07/2026

NAB Meets With Trusty on Ownership Caps

Share Copy link Facebook X Linkedin Bluesky Email...

29/07/2026

QuickLink To Feature New StudioPro AnywhereTally At IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

29/07/2026

HBO Max Launches Vertical Shorts to Improve Content Discovery

Share Copy link Facebook X Linkedin Bluesky Email...

29/07/2026

New Tool Identifies Sources Of Fake Videos

Share Copy link Facebook X Linkedin Bluesky Email...

29/07/2026

DNEG Migrates Editorial Workflows to Foundrys Hiero

Foundry today announced that Academy Award-winning creative studio DNEG has implemented Hiero to support its editorial workflows. Part of the Nuke product famil...

29/07/2026

QuickLink Unveils New StudioPro AnywhereTally Remote Tall...

The Latest Addition to the Brand's StudioPro Ecosystem Combines Simple Deployment, Cloud Control and Professional Grade Wireless Reliability QuickLink, a l...

29/07/2026

The Secret Master Adjustment Layer Hack in After Effects

The Secret Master Adjustment Layer Hack in After Effects Graham Quince July 28, 2026 0 Comments Trish Meyer (who literally beta-tested the original Af...

29/07/2026

Post Completed with Blackmagic Cloud for Shane Kosugi's Feature Film SEEK

Post Completed with Blackmagic Cloud for Shane Kosugi's Feature Film SEEK Brie Clayton July 28, 2026 0 Comments Cannes Indie International Film Fe...

29/07/2026

Isabeau Miller Named Chair of Berklee Songwriting Department

Isabeau Miller Named Chair of Berklee Songwriting Department The Berklee alumna, who previously served on the Songwriting faculty, will begin her new role on ...

28/07/2026

LiveUs World Cup Record: 1,700 Units Support Wide Range of Transmission Needs

LiveU, the pioneer in IP-video transmission and cloud-based remote production, today detailed its historic performance records set during the 2026 FIFA World Cu...

28/07/2026

Case Study: How the Dallas Cowboys Removed Bottlenecks in Off-site Content Production

The NFL franchise rebuilt their off-site content operation for an era when teams...

28/07/2026

A New Way To Watch': How Formula 1 and Sky Sports Are Pushing Race Coverage Into a New Era

Longtime partners expand viewer choice, data-driven analysis, access, immersive ...

28/07/2026

Grass Valley Op Ed: Seven Paradoxes Shaping the Next Era of Media Production

There is a unique moment before every major production. The audience never sees it. The cameras are ready. The talent is preparing. Directors review the final...

28/07/2026

The CW Network, ESPN Ink Streaming Agreement With Launch on Aug. 4

The CW Network and ESPN have announced their highly anticipated streaming agreement to bring CW Sports' live events to the ESPN App will officially launch o...

28/07/2026

Lawo Delivers Audio Excellence for Europes Largest Classical Open-Air Concert on Bastille Day

As more than tens of thousands of spectators filled Paris' Champ de Mars and...

28/07/2026

Appear Assists Chile's First Large-Scale 4K FIFA World Cup Viewing Experience

Appear's X Platform played a central role in Chile's first large-scale c...

28/07/2026

IBC 2026: Solid State Logic Highlights Transition to Software-Defined Production

Responding to the broadcast industry's shift to embrace more flexible production platforms, Solid State Logic (SSL) is evolving its comprehensive System T p...

28/07/2026

TNT Sports Goes to Greater Heights With New DUNKMAN League

Production leverages innovative camera technologies, AI, and data to capture the action in four-week inaugural competition The first-ever professional dunking ...

28/07/2026

Rogers, Prime Video Ink 12-Year Sublicensing Deal for NHL Rights in Canada

Prime Video to exclusively broadcast Wednesday night national NHL regular-season games in Canada...

28/07/2026

CBS Sports Snags U.S. English-Language Rights for CONCACAF Champions Cup

Every match will stream live on Paramount+ beginning in February,...

28/07/2026

TK Audio unveil the TK-Lizer 3

Baxandall-inspired hardware EQ overhauled TK Audio's Baxandall-inspired hardware EQ unit has just made a return, bringing the popular unit back into the...

28/07/2026

Asparion reveal the D700 Rack

D700 system gains new live-focused rackmount surface Asparion have just announced an expansion of their D700 control surface range, introducing a new model ...

28/07/2026

Six NFVF Presidential Employment Stimulus Programme (PESP)-Funded Films Selected for the 47th Durban International Film Festival (DIFF)

27 July 2026, Johannesburg - The National Film and Video Foundation (NFVF), an a...

28/07/2026

Nielsen Launches Ad Intel AI: the Only Product of its Kind that Transforms Fragmented Ad Data into Actionable Intelligence

Ad Intel AI is Nielsen's first in a new generation of AI products built to t...

28/07/2026

aconnic is ramping up supply for the new ACCEED 1444 fiber migration

Contribution to Europe's technological autonomy in the key industry telecommunications aconnic AG (ISIN: DE000A0LBKW6), Munich, starts commercial shipments...

28/07/2026

The Tow Foundation Awards PMVP $400,000 Grant

Share Copy link Facebook X Linkedin Bluesky Email...

28/07/2026

LiveU's World Cup Support Breaks Company Records

Share Copy link Facebook X Linkedin Bluesky Email...

28/07/2026

Encompass Selected by Channel 4 to Deliver Managed Linear...

Encompass Digital Media has been selected by Channel 4, one of the UK's public service broadcasters, to deliver managed linear playout services as part of a...

28/07/2026

Cinegy partners with SAMA Digital Media Solutions to sati...

Cinegy GmbH, the premier provider of software-defined television technology, has confirmed a new partnership with leading Korean systems integrator and distribu...

28/07/2026

Limecraft Adds Multicam Player and Audio Fingerprint-Base...

Limecraft today announces version 2026.5 of its AI-powered production platform. Limecraft 2026.5 https://(www.limecraft.com/limecraft-2026-5-multicam-quad-view-...

28/07/2026

Appear powers first large-scale 4k FIFA World Cup viewing...

X Platform technology enabled a premium UHD viewing experience through a hybrid ground-to-cloud architecture developed with Chilevisi n, ClaroVTR and Pixop App...

28/07/2026

LiveU Delivers Record-Breaking LIQ and Cloud Service Depl...

LiveU, the pioneer in IP-video transmission and cloud-based remote production, today announced it has set historic performance records during the 2026 World Foo...

28/07/2026

DHD Releases New Firmware and Options for its Audio Produ...

dhd.audio announces that its latest generation firmware, Version 10.4, is now available to DHD customers. Version 10.4 introduces expanded configuration capabil...

28/07/2026

Study: TV Operating Systems Gain Influence Over Viewing

Share Copy link Facebook X Linkedin Bluesky Email...

28/07/2026

Maryland Public Television Promotes Ling Ling Sun to CTO

Share Copy link Facebook X Linkedin Bluesky Email...

28/07/2026

NUGEN Audio Helps Mix Technician Blake Bunzel Deliver Rel...

Brand's Intuitive Metering and Dialogue Tools Improve Efficiency and Maintain Clarity Across Projects Ranging from Sitcoms to Effects Heavy Fantasy Series ...

28/07/2026

TAG Video Systems Accelerates the Move to Cloud and Virtu...

TAG Video Systems, a leader in 100% software-based realtime media monitoring, multiviewing and quality control (QC), today announced the latest innovations to i...

28/07/2026

Harvard Athletics Transforms Collegiate Sports Storytelling with AJA Gear

Harvard Athletics Transforms Collegiate Sports Storytelling with AJA Gear Brie Clayton July 27, 2026 0 Comments Between the maturation of IP and remot...

28/07/2026

New Live Action Projection Mapping Film Captured with URSA Cine 12K LF

New Live Action Projection Mapping Film Captured with URSA Cine 12K LF Brie Clayton July 27, 2026 0 Comments Large format sensor allows Texas Legacy ...

28/07/2026

NVIDIA Agent Toolkit Expands With New Omniverse Libraries, Putting AI Agents to Work Building Simulation-Ready Worlds

NVIDIA Agent Toolkit Expands With New Omniverse Libraries, Putting AI Agents to ...

28/07/2026

AI Agents Expand Creative Tools to Millions

AI Agents Expand Creative Tools to Millions Brie Clayton July 27, 2026 0 Comments Hero image courtesy of Epic Games Leading creative applications are...

28/07/2026

How Rick Aggeler Built a Music Community for Boston Teens

How Rick Aggeler Built a Music Community for Boston Teens When he was a Berklee student, Aggeler volunteered at the Boys & Girls Clubs of Boston, where he hel...

28/07/2026

Football is back on Sky Sports following its most watched Premier League season ever

Tuesday 28 July 2026 Football is back on Sky Sports following its most watched ...

28/07/2026

Powerful Compute So Compact, It's Clutch - Build AI in Your Hand With NVIDIA Jetson

As a discerning AI investor who values style and substance, Sarah Guo knows this...

28/07/2026

Are you coming to the Fleadh? RT will be there

RT Raidi na Gaeltachta, RT Radio 1, RT One and RT Player to showcase the best of the reels, rhymes and rambles from Comhaltas Fleadh Cheoil na h ireann 202...