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 ...

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...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

19/06/2026

NBC Sports U.S. Open Coverage Fires Up 92 Cameras, Bunker cams

Split compound eases operational challenges at Shinnecock Hills Golf Club...

19/06/2026

ESPN's Men's College World Series Production Adds Onsite Studio, POVORA CapCams, Expanded Drone Coverage for Finale in Omaha

North Carolina, Oklahoma meet in the best-of-three Finals as ESPN leans into spe...

19/06/2026

Ninja AB from The Him DSP

Company launch comprehensive mix-comparison tool The Him DSP are a plug-in company founded by The Him, an EDM DJ and producer who has amassed over half a bi...

19/06/2026

Bitwig Studio 6.1 enters beta testing

Major Sampler upgrades introduced The latest version of Bitwig's DAW software has just entered public beta testing, and is available now for all users w...

19/06/2026

Akai Pro's MPC One & MPC Key 37 get G2 upgrade

Four times the power of their predecessors Akai Pro have just introduced upgraded versions of two of their popular standalone MPC systems, kitting them out ...

19/06/2026

Eurovision secures top four position as content distributor rankings hold steady in Poland

Data from May shows seasonal outdoor trends triggers lower viewing Warsaw, Pola...

19/06/2026

Bitfocus Buttons wins another top industry award

Buttons is best control system in the rAVe Best of Infocomm Awards 2026...

19/06/2026

Mavis Studio Makes iPad Production More Powerful

Mavis Studio Makes iPad Production More Powerful Brie Clayton June 19, 2026 0 Comments InfoComm update brings new NDI Preview, PTZ control, USB audio ...

19/06/2026

Immersive Studio Metaverse Stage Tackles Post with Blackmagic Design

Immersive Studio Metaverse Stage Tackles Post with Blackmagic Design Brie Clayton June 19, 2026 0 Comments New narrative projects rely on DaVinci Reso...

19/06/2026

How to Run the Original 1993 After Effects

How to Run the Original 1993 After Effects Graham Quince June 19, 2026 0 Comments How to the original After Effects v1 in an emulator, and you don'...

19/06/2026

IBC Show to Increase Focus on Networking, Startups

Share Copy link Facebook X Linkedin Bluesky Email...

19/06/2026

Irdeto Taps Axel Gallant as CEO

Share Copy link Facebook X Linkedin Bluesky Email...

19/06/2026

SMPTE Makes Its Standards Freely Accessible - Opening St...

SMPTE , the home of media professionals, technologists and engineers, has announced that its entire Standards catalog is now freely available to the global medi...

19/06/2026

nsign and BrightSign partner to expand deployment options...

nsign, the digital signage SaaS platform built around its core principle of Simplify Complexity, has announced a partnership with BrightSign , expanding the dep...

19/06/2026

Visual Productions Unveils RdmRelay2 Four-channel Relay...

Visual Productions announces the availability of its new RdmRelay2 at InfoComm 2026 (ACT Entertainment, Booth N6813). A networked, four-channel DMX relay, it is...

19/06/2026

Adobe Unveils Major Expansion of Creative Agent Across Firefly and Creative Cloud Apps Including Photoshop and Premiere

Adobe Unveils Major Expansion of Creative Agent Across Firefly and Creative Clou...

19/06/2026

Immersive Studio Metaverse Stage Innovates Storytelling with URSA Cine Immersive

Immersive Studio Metaverse Stage Innovates Storytelling with URSA Cine Immersive Brie Clayton June 18, 2026 0 Comments Two new narrative short films c...

19/06/2026

How to watch the 2026/27 Premier League season on Sky Sports

Friday 19 June 2026 How to watch the 2026/27 Premier League season on Sky Sports Which matches are Sky Sports showing on the 2026/27 Premier League opening we...

19/06/2026

What's New at FilmLight? New York. 8 July 2026

Catch up on the latest developments across Baselight and Daylight v7, Nara and FilmLight API Wednesday 8 July, 5pm onwards Firehouse: DCTV, 87 Lafayette St, Ne...

19/06/2026

June 18, 2026

Lab studies explain how new cancer drug works as it enters patient testing Immunologists at Scripps Research show how a new, experimental drug revives immune ce...

18/06/2026

Ratings Roundup: Knicks-Spurs NBA Finals Is Most Watched Since Jordan Bulls Era; FIFA World Cup Opens Big

Ratings Roundup is a rundown of recent rating news and is derived from press rel...

18/06/2026

InfoComm 2026: PTZOptics Debuts Healthcare Visual Reasoning Integration with LayerJot

PTZOptics has unveiled new Visual Reasoning demonstrations at InfoComm 2026 (Boo...

18/06/2026

IBC 2026: Announces New Future Tech Ignite Initiative, Expanded Exhibitor Participation

IBC2026 will take place at the RAI Amsterdam from September 11-14, bringing toge...

18/06/2026

InfoComm 2026 Holds Inaugural Media Day with Product Announcements from 19 Exhibitors

InfoComm 2026 held its first-ever Media Day on June 17, providing journalists an...

18/06/2026

Info Comm 2026: FOR-A America Announces TAA-Compliant LED Display Package

FOR-A America has announced a Trade Agreements Act (TAA)-compliant LED display solution combining Alfalite's Litepix LED displays and Brompton Technology...

18/06/2026

SVG GameDay, Ep. 20: Cleveland Browns Kyle Millen - Run of Shows & Rock n Roll

In-venue and creative video staffers at the professional and collegiate level have one major thing in common: the intensity and attention to detail ramps up dur...

18/06/2026

International Federation of American Football, TMRW Sports Partner on Global Growth of Flag Football

The International Federation of American Football (IFAF) and TMRW Sports have an...

18/06/2026

AJA Debuts Io Xpand Thunderbolt 5 Expansion Chassis for KONA and Corvid PCIe I/O Cards

AJA Video Systems has unveiled Io Xpand, a Thunderbolt 5-enabled PCIe expansion ...

18/06/2026

ESPN Marks 30th Anniversary of WNBA's Inaugural Game With Liberty-Sparks Broadcast

ESPN has announced its coverage plans for the 30th anniversary of the WNBA's...

18/06/2026

FOX Sports' Big Noon Kickoff Heads to London for Union Jack Classic From Wembley Stadium

FOX Sports' Big Noon Kickoff will broadcast live from Wembley Stadium in Lon...

18/06/2026

InfoComm 2026: Show Opens With Microsoft Keynote, Media Day, and New Industry Initiatives

InfoComm 2026 opened on Wednesday at the Las Vegas Convention Center, bringing t...

18/06/2026

SVG New Sponsor Spotlight: Akta's Matt Smith on Building AI Into the Foundation of the Video Workflow

As media companies look to deliver more live, VOD, and snackable sports content ...

18/06/2026

2026 Sundance Film Festival: Local Lens

Top L-R: Take Me Home, The Lake Bottom L-R: TheyDream, Union County Free Summer Screening Series Announced Screenings for the Local Utah Community at...

18/06/2026

iamReverb gets an update

Improvements & new IR content iamReverb Audio have just launched a free update that kits their convolution reverb plug-in out with some new features and int...

18/06/2026

Two notes unveil Genome 2.0

Modelling suite gains improved captures, iOS support & more Two notes Audio Engineering have just announced the launch of Genome 2.0, a significant update t...

18/06/2026

VSL update Vienna Ensemble Pro 8

New AI assistance feature, video overhaul & more VSL have just announced the launch of Vienna Ensemble Pro 8.1 and 8.1V, a pair of major updates to their ev...

18/06/2026

The Gauge: Poland | May 2026

The average daily TV screen time in May was 3 hours and 36 minutes, marking a clear decrease of 15 minutes compared to April. This trend proved to be much stron...

18/06/2026

Gracenote and PubMatic Bring Curated Live Sports and Content-Level Deals to Programmatic CTV

Integration embeds Gracenote content intelligence, including contextual segments...

18/06/2026

AJA Debuts Io Xpand Thunderbolt 5 Expansion Chassis for...

AJA Video Systems unveiled Io Xpand, a high-performance Thunderbolt 5-enabled PCIe expansion chassis for AJA KONA and Corvid video and audio I/O cards. As dema...

18/06/2026

Providius Announces Providius Direct for Faster AV-over-I...

New NVRT-driven workflow enables on-demand traffic mirroring and guided troubleshooting for AV teams, integrators, and support organizations ahead of InfoComm 2...

18/06/2026

Mavis Studio Brings New Muscle to Mobile Production on iP...

At InfoComm 2026, Mavis announced a major update to Mavis Studio, its live production app for the iPad, with new features designed to make professional AV produ...

18/06/2026

Harmonic Completes Divestiture of Video Business to Media...

Transaction Positions Harmonic as a Pure-Play Broadband Company Harmonic Inc. (NASDAQ: HLIT), the worldwide leader in virtualized broadband solutions, today a...

18/06/2026

ACT Entertainment and NETGEAR Partner to Power the Futur...

ACT Entertainment and NETGEAR have announced a strategic partnership that establishes verified interoperability between NETGEAR Switches and key technologies fr...

18/06/2026

IBC2026 creates new pathways from innovation to real-worl...

IBC2026 is set to bring the global media, entertainment and technology community together at the RAI Amsterdam from 11 14 September, enabling industry players f...

18/06/2026

PLIANT TECHNOLOGIES DEBUTS CREWCOM FLEX THE WORLDS FIRST...

Pliant Technologies is proud to introduce CrewCom Flex , the world's first frameless matrix intercom system and the only complete matrix IP-based intercom s...

18/06/2026

XR Sports Alliance Strengthens its Capabilities with New...

The XR Sports Alliance (XRSA) has announced that a new cohort of members has joined the strategic initiative: ActionStreamer, Antigravity, Creative Artists Agen...