
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 ...
06/09/2026
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
10/07/2026
In-venue and creative video staffers at the professional and collegiate level ha...
10/07/2026
FUJIFILM North America Corporation has announced the FUJINON GF19-35mmT3.5 PZ OIS WR, a cinema power zoom lens for the GFX System with native G Mount. The lens ...
10/07/2026
Dalet has announced a new Long-Term Supported (LTS) release of Dalet Flex, expanding AI capabilities, workflow automation, and integration with Dalia, Dalet'...
10/07/2026
Blackmagic Design has released Fairlight Live, a free software-based broadcast audio mixer for Mac and Windows, available for download now. Simultaneously, the ...
10/07/2026
FloSports and the USA South Athletic Conference have announced an exclusive medi...
10/07/2026
Daktronics has manufactured and installed an LED video display at Field of Dream...
10/07/2026
Registration is now open for NAB Show New York 2026, taking place October 21-22 ...
10/07/2026
Sphere Entertainment Co. and the Formula 1 Heineken Las Vegas Grand Prix have an...
10/07/2026
CBS Sports and the Asian Football Confederation (AFC) have announced a media rights partnership covering the AFC Asian Cup Saudi Arabia 2027 and the AFC U23 Asi...
10/07/2026
Sony Electronics has announced the RX10 V, the fifth generation of its RX10 all-in-one camera series. The camera will be available in August 2026 at a suggested...
10/07/2026
Chyron has announced PRIME 5.4, an update to its unified graphics, playout, and ...
10/07/2026
The nine-time Emmy Award-winning video engineer was a pioneer of NASCAR in-car cameras and a longtime fixture in FOX Sports' video-control operation...
10/07/2026
FuboTV Inc. has announced the appointment of Alisa Bowen as Chief Executive Officer, effective July 10. Bowen succeeds David Gandler, who co-founded the company...
10/07/2026
Every entry on Nielsen's Top 25 Live Sports Events Telecasts for the week of...
10/07/2026
The Braves opted to keep production in-house rather than hand it off to MLB...
10/07/2026
Drones, jibs, robos are part of the expanded camera complement for the Professional Bull Riders series
PBR Teams' 2026 season, with a 10-team field competi...
10/07/2026
(L-R) Michael Arndt, Paul Dano, Toni Collette, Valerie Faris, Abigail Breslin, Jonathan Dayton, and Greg Kinnear attend the Park City Legacy program screening o...
10/07/2026
Discounted rates available through 27 August 2026
The Audio Engineering Society (AES) have announced that Early Bird registration is now open for the AES Sh...
10/07/2026
New in-ear monitors to launch in August 2026
Sony have announced the upcoming launch of a new pair of in-ear monitors that promise to deliver a secure, stab...
10/07/2026
Why CRAS Upgraded to Symphony I/O MK II When an audio school runs studios all day, every day, gear doesn't just need to sound good , it needs to survive rea...
10/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/07/2026
Hey Man, Cheech & Chong's Last Movie Rolls With SNS EVO
Melanie Ciotti July 10, 2026
0 Comments
Richard Cheech Marin and Tommy Chong have long b...
10/07/2026
Alex Zarfati's Fail Safe Shot with Blackmagic PYXIS 12K
Brie Clayton July 10, 2026
0 Comments
Camera's full frame sensor supports anamorphic s...
10/07/2026
Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...
10/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/07/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
10/07/2026
Data has always been central to media operations. Every ad that airs, every campaign that delivers, and every audience that's measured- all of it generates ...
10/07/2026
New RT documentary explores Irish-led efforts to build bridges in divided Cyprus
More than a Game: From D1 to Pyla airs Monday 13 July
More Than a Game: Fro...
09/07/2026
With 50+ cameras, three trucks, 60+ EVS channels, RFID hole-card workflows, and ...
09/07/2026
A recent graduate from Westchester, NY, this experienced technician has already started her first gig in the industry, as a REMI A2 Comms Specialist at ESPN
In...
09/07/2026
Live sports production is a fast-paced industry with no signs of slowing down. W...
09/07/2026
From a rooftop studio in Manhattan, multiple Germany-based companies share respo...
09/07/2026
Overtime has announced a content partnership with FOX One to produce Race to Glo...
09/07/2026
Clear-Com has announced that Ross Production Services (RPS) has standardized on ...
09/07/2026
The NFL has announced that NetApp will return as Presenting Partner of the NFL Madrid Game, featuring the Atlanta Falcons against the Cincinnati Bengals at the ...
09/07/2026
The R&A and Cisco have announced a multi-year partnership making Cisco the Official Network Supplier of The R&A and its Championships. Cisco will deploy AI-read...
09/07/2026
Fox Television Stations, Extreme Reach (XR), and LTN have announced the completi...
09/07/2026
Kiswe has announced a partnership with Wynn Records to launch the Wynn Records Network streaming platform, debuting Saturday, July 11 with a Salita Promotions b...
09/07/2026
NEP Europe has announced a new multi-year agreement with Wimbledon Broadcast Ser...
09/07/2026
Thropic Games, a company offering casual mobile games tied to fan fundraising for sports programs, has announced a pre-seed funding round led by The Famous Grou...
09/07/2026
Game Creek Video has reached an agreement with Grass Valley to purchase 10 K-Frame production switchers as part of a two-year fleet expansion. Two systems have ...
09/07/2026
Gravity Media is delivering a three-hub remote production workflow for ITV's...
09/07/2026
A new report from Quickplay and Caretta Research, The Broadcaster Revolution Wi...