
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
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
15/05/2026
Lightware returns to InfoComm 2026 with a focused showcase of scalable USB-C connectivity, next-generation AV-over-IP solutions, and technologies that help over...
15/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
15/05/2026
Delivering a live, arena-scale production of a massively popular band is no small feat. Between expansive in-arena LED walls and a global live stream fed to onl...
15/05/2026
Connection is the heartbeat of any strong community, and with live streaming becoming more accessible in the modern era, it's much easier for faith-based or...
15/05/2026
Powered by GX 3 media servers, optimised IP-VFC workflows and on-site engineering expertise, the production delivers high-performance visuals for one of the wor...
14/05/2026
Sweetwater and Airstream have announced a custom-built Dolby Atmos mobile recording studio inside an Airstream trailer, set to tour music festivals, schools, tr...
14/05/2026
The American Association of Professional Baseball (AAPB) has announced a new par...
14/05/2026
ESPN has announced plans to transform Santa Monica Beach into a broadcast hub du...
14/05/2026
Amagi has announced a significant update to Amagi CLOUDPORT, its cloud-based broadcast playout platform. The update includes 250-plus features shipped in FY25-2...
14/05/2026
Clear-Com will exhibit at InfoComm 2026 (Booth N7005, June 17-19, Las Vegas Convention Center), introducing a new product that builds on Arcadia Central Station...
14/05/2026
Ikegami will exhibit at BroadcastAsia 2026 (Stand 5D3-1, Singapore Expo, May 20-22), introducing two new viewfinders alongside its existing camera, control, and...
14/05/2026
Grass Valley has announced that dB Broadcast has delivered new IP-based outside ...
14/05/2026
NAGRAVISION, a Kudelski Group company, has announced a partnership with the World Professional Billiards and Snooker Association (WPBSA) to launch Play Snooker,...
14/05/2026
Belden Inc. has announced a definitive agreement to acquire RUCKUS Networks from Vistance Networks for approximately $1.85 billion. The transaction has been app...
14/05/2026
NVIDIA has released the Content Localization Blueprint, a modular reference arch...
14/05/2026
Disney has announced that Disney will be the exclusive U.S. streaming home of the Banana Bowl, the Banana Ball league season championship, streaming live this ...
14/05/2026
Arkona technologies and technology partner manifold will demonstrate their production solutions on the Magna Systems and Engineering stand (Booth 5D1-1) at Broa...
14/05/2026
Haivision will host a webinar on Thursday, May 21 at 10 a.m. ET / 4 p.m. CET cov...
14/05/2026
The CW Network and ESPN have announced a sublicense broadcast agreement for The CW to televise ACC football and men's and women's college basketball gam...
14/05/2026
The agreement marks Scripps Sports' first NBA local rights deal...
14/05/2026
A new report from education-technology company Wiingy testing post-ChatGPT predictions against three years of real-world data has identified broadcasting as one...
14/05/2026
Global Citizen and FIFA have announced that Madonna, Shakira, and BTS will headl...
14/05/2026
LOS ANGELES, CA, May 14, 2026 - The nonprofit Sundance Institute announced today the cohort selected for the 2026 Episodic Lab program, taking place at Dunaway ...
14/05/2026
At Spotify, we're focused on making every listening experience feel intentio...
14/05/2026
Spotify recently welcomed songwriters, artists, executives, and music students t...
14/05/2026
New articulations, ostinatos, Motion Scoring Articulation Sets & more
Sonuscore's flagship cinematic string library has just been treated to a significa...
14/05/2026
World-class studio opens on T rkiye's Aegean coast
P r Recording & Residence have announced their official opening, introducing a new world-class reside...
14/05/2026
Now supports channel layouts up to 9.1.6
Nugen Audio have just released an update for their AI-powered dialogue intelligibility and compliance tool. Set to ...
14/05/2026
New recordings & one-key chord tool
UVI have just announced the release of Orchestral Suite 2, a ground-up redesign of their all-in-one symphonic orchestra ...
14/05/2026
Two new arrivals & expanded factory content
Rob Papen's all-encompassing plug-in and virtual instrument collection has just been treated to another upda...
14/05/2026
Embed QR codes into DAW sessions
FSK Audio's latest plug-in doesn't process audio, but serves as an organisational tool that allows QR codes to be e...
14/05/2026
SBS Board appoints Jane Palfreyman Managing Director
13 May, 2026
Media releases
The Special Broadcasting Service (SBS) Board of Directors is pleased to an...
14/05/2026
Transforming bold ideas into market-ready productions: Digital Originals returns
14 May, 2026
Media releases
SBS, NITV and Screen Australia have announced ...
14/05/2026
Australia Uncovered Returns to SBS with Bold New Season Featuring John Safran on...
14/05/2026
Rohde & Schwarz transforms spectrum complexity into situational awareness and ef...
14/05/2026
Rohde & Schwarz and Quantum Systems join forces to redefine EW and C-UAS-enabled...
14/05/2026
Rohde & Schwarz showcases STANAG aligned ARDRONIS Counter UAS capability at NATO...
14/05/2026
Code of Silence has won the BAFTA for Best Drama Series at Sunday night's ceremony at the Royal Festival Hall.
The series, starring Rose Ayling-Ellis and w...
14/05/2026
Soldiers equipped with Falcon IV radios will soon gain a sense-and-protect capa...
14/05/2026
Artists concept of the L3Harris Next Gen RTG in flight configuration, designed to provide 250 watts of reliable power for decades-long missions in deep space....
14/05/2026
Vivid Broadcast was embracing remote production long before it became the industry norm. Now, with Calrec's True Control 2.0-enabled Argo M and Type R conso...
14/05/2026
Car ad spend rises sharply in March as more auto buyers turn to electric, hybrid...