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

2026 NAB Show New York Exhibitor Insight: Matrox Video

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Skydance Completes Paramount-WBD Merger

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Exclusive: SDI Remains Primary Infrastructure for Broadcasters

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Zixi, Grass Valley, Uplynk and BroadView Software Set Out IP Framework for Distribution

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

DHD SX2 and XS3 Audio System Selected for Broadcast Media...

UK-based broadcast engineer Andrew Kemp has chosen a dhd.audio SX2 and XS3 as the basis of a transportable media-training resource. With a quarter-century of ex...

07/10/2026

Techex to Demo Hybrid Satellite-IP Delivery at NAB Show New York

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Fred Vigeant to Lead Pennsylvania's WPSU

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Brazil's SBT Uses Pebble Automation for Expanded Playout

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Florida Panthers and AJP Complete Next-Generation Broadcast Production Facility

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Emmys Will Move to Prime Video Next Year

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Netflix Taps IMG as Production Partner for 2027 Women's World Cup

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

2026 NAB Show New York Exhibitor Insight: Appear

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

University of Utah Adds State-of-the-Art Sports Production Facility

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Sinclair, New Media to Launch Subscription Digital News Platform

Share Copy link Facebook X Linkedin Bluesky Email...

07/10/2026

Cobalt Digital to Bring End to End ST 2110 IPMX Solutions...

Cobalt Digital to Bring End-to-End ST 2110/IPMX Solutions and Practical Tools to NAB Show New York Highlights include complete path from SDI to IP, C-band tran...

07/10/2026

Deerstalker Pictures The Exorcism of Nixie Shot With Blackmagic Cameras

Deerstalker Pictures The Exorcism of Nixie Shot With Blackmagic Cameras Brie Clayton October 6, 2026 0 Comments Fantasy series relied on Blackmagic ca...

07/10/2026

Nevion announces Providius NVRT integration with eMerge switches for expanded broadcast network observability

Nevion announces Providius NVRT integration with eMerge switches for expanded br...

07/10/2026

DriveShelf - A Filmmaker's Mac App for Finding Footage on Unplugged Drives

DriveShelf - A Filmmaker's Mac App for Finding Footage on Unplugged Drives Brie Clayton October 6, 2026 0 Comments DriveShelf for Mac catalogs eve...

07/10/2026

COW Jobs: Cinematographer, Video Editor - Baltimore, MD

COW Jobs: Cinematographer, Video Editor - Baltimore, MD Brie Clayton October 7, 2026 0 Comments Cinematographer / Video Editor September 23, 2026 ...

07/10/2026

Behind the Scenes at Berklee Homecoming 2026

Behind the Scenes at Berklee Homecoming 2026 Follow Marley Striem BM '25 behind the scenes as she manages a team of students and liaises with artists duri...

07/10/2026

Berklee College of Music and Berklee Valencia Named to Billboards 2026 List of Top Music Business Schools

Berklee College of Music and Berklee Valencia Named to Billboards 2026 List of T...

07/10/2026

Experts raise alarm over dangerous' fertility treatments in Ireland in new RT Investigates Documentary

Undercover filming shows add-on treatments with potential safety concerns on sal...

07/10/2026

Get ready to laugh out loud, RT comedy show No Worries If Not is back

Join Emma Doran, Justine Stafford, Killian Sundermann, Se n Burke and Michael Fry on RT 2 and RT Player tomorrow at 10.30pm A host of guest stars include Siob...

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...

06/10/2026

Op-Ed: The Story Object Model for Sport? The Game Is Already in Play

A response to Mark Turner and the SVG AI Innovation Lab SVG AI Innovation Lab Program Director Mark Turner's How Broadcast Sports Can Apply the Newsroom S...

06/10/2026

Cobalt Digital to Demonstrate ST 2110/IPMX Ecosystem at NAB Show New York

Cobalt Digital will exhibit at NAB Show New York 2026 (Booth 226, Javits Center, October 21-22), demonstrating its ST 2110/IPMX product line alongside solutions...

06/10/2026

LiveU and Airwise Partner on End-to-End Drone Video Solution for Public Safety

LiveU and Airwise have announced a strategic partnership integrating LiveU's bonded video transmission with Airwise's drone fleet management, airspace a...

06/10/2026

Tottenham Hotspur and San Antonio Spurs team up with ScorePlay and TwelveLabs to host the Spurs Hackathon in Austin

Hotspur Labs, Tottenham Hotspur's corporate venture programme, will co-host ...

06/10/2026

SPORTEL Monaco 2026 Conference Program Announced

SPORTEL Monaco 2026 will take place October 19-21 at the Grimaldi Forum in Monaco, with the conference programme running October 19-20. Sessions include: Mast...

06/10/2026

Zixi Appoints John Towers as Chief Financial Officer

Zixi has announced the appointment of John Towers as Chief Financial Officer. Towers brings more than 20 years of experience in media and entertainment, includi...

06/10/2026

Memphis Grizzlies and DAZN to Simulcast 15 Games on ABC24

The Memphis Grizzlies, DAZN, and WATN/ABC24 have announced a partnership to simulcast 15 regular season Grizzlies games free over-the-air on ABC24 during the 20...

06/10/2026

Timberwolves, KARE 11, and DAZN to Simulcast 15 Games Free Over-the-Air

The Minnesota Timberwolves, KARE 11, and DAZN have announced a partnership to simulcast 15 Timberwolves games free over-the-air on KARE 11 during the 2026-27 se...

06/10/2026

SVG Sit-Down: Sportel Executive Director Marine Picoulet on What to Expect in Monaco This Month

Sportel 2026 is set to be held in Monaco in less than two weeks (beginning Octob...

06/10/2026

SVG Sit-Down: iodyne's Michael Gitig on Meeting a Team's Rising Content-Delivery Demands

The company's Pro Data portable storage unit enabled the Dallas Cowboys prod...

06/10/2026

Warm Audio launch the Mod Series

Three new compact pedals announced Warm Audio have just introduced a new guitar pedal line-up that offers compact, pedalboard-friendly versions of some of t...

06/10/2026

WaveMachine Labs Drumagog 6 arrives

Drum-replacement tool gets major overhaul WaveMachine Labs have announced that the latest version of their drum-replacement software is now available, and i...

06/10/2026

Arturia update the AstroLab

Firmware update implements user-requested features Arturia's stage-going keyboard series has just received a significant update that addresses some of t...

06/10/2026

Adhoc notification: SGL Carbon reports preliminary sales and earnings figures for the first nine months and raises its forecast for 2026

(4:51 PM) Wiesbaden, October 06, 2026. Based on business performance to date, pa...

06/10/2026

SBS invites audiences and communities to help shape the future of its language services

SBS invites audiences and communities to help shape the future of its language s...

06/10/2026

Cobalt Digital's Pacific Line Wins Two Future Best of Show Awards at IBC

Manufacturer receives honors from both TV Tech and TVB Europe for advancements in compression technology AMSTERDAM September 30, 2026 - Cobalt Digital has ...

06/10/2026

Cobalt Digital to Bring End-to-End ST 2110/IPMX Solutions and Practical Tools to NAB Show New York

Cobalt Digital NAB NY Booth 226 // Journalists: Click to visit Cobalt Highlight...

06/10/2026

Rich Welsh Joins Molinare as Chief Innovation Officer

Share Copy link Facebook X Linkedin Bluesky Email...

06/10/2026

John Towers Joins Zixi as CFO

Share Copy link Facebook X Linkedin Bluesky Email...

06/10/2026

Applications Open for 2026 LAUNCH Mentorship Program

Share Copy link Facebook X Linkedin Bluesky Email...

06/10/2026

Imaginary Forces Paints a Portrait of Conflict in War

Imaginary Forces Paints a Portrait of Conflict in War Brie Clayton October 6, 2026 0 Comments Director Ronnie Koff of Imaginary Forces (IF) transforms...

06/10/2026

Hollywood River Studios Breaks Ground On Major Production St. Louis Campus

Share Copy link Facebook X Linkedin Bluesky Email...

06/10/2026

TiVo One Ad Platform Sets New Revenue Record With 6.3 Million Monthly Users

Share Copy link Facebook X Linkedin Bluesky Email...

06/10/2026

SBT expands playout operations with Pebble Automation

Pebble, a leading specialist in automation, content management and integrated channel solutions, is supporting the continued modernisation of playout at Brazili...