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 ...

01/06/2026

Dolby Sets the New Standard for Premium Entertainment at CES 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...

02/05/2026

Dalet Flex LTS Delivers Smarter Search, Faster Editing, and an AI-Ready Foundation for Modern Media

Dalet, a leading technology and service provider for media-rich organizations, t...

01/05/2026

NBCUniversal's Peacock to Be First Streamer to Integrate Dolby's Full Suite of Premium Picture and Sound Innovations

January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...

01/04/2026

DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION

January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION Douyin Users Can Now Create And Share Videos With Stun...

31/03/2026

Spectrum TV App to Launch on Amazon Fire TV Devices

Share Copy link Facebook X Linkedin Bluesky Email...

31/03/2026

CueScript to Showcase Innovations at NAB that Add Mobilit...

CueScript, a leading international developer of professional teleprompting solutions, is enhancing its platform with three innovations that elevate flexibility,...

31/03/2026

GALSNGEAR Returns to the 2026 NAB Show with Expanded Meet...

#GALSNGEAR will host a series of meetups, panel discussions, and networking events during the 2026 NAB Show, taking place April 18 22 in Las Vegas. The organi...

31/03/2026

Imagine Introduces AI Assisted Scheduling at 2026 NAB Sho...

At the 2026 NAB Show (April 19-22, Las Vegas Convention Center, Booth #N1328), Imagine Communications is introducing AI assisted scheduling capabilities within ...

31/03/2026

PSSI boosts live sports flexibility and security with the...

High-density upgrade for mobile fleet and PSSI International Teleport gives PSSI more flexibility for premium live event coverage PSSI and Appear today announc...

31/03/2026

Solid State Logic Enhances Virtualized System T Platform to Deliver Scalable Cloud and On-Prem Production for NAB 2026

Solid State Logic Enhances Virtualized System T Platform to Deliver Scalable Clo...

31/03/2026

OWC to Showcase Storage, Workflow Acceleration, and Reliability Solutions for Creatives and Post-Production Professionals at NAB 2026

OWC to Showcase Storage, Workflow Acceleration, and Reliability Solutions for Cr...

31/03/2026

PSSI Taps Appear X for Live Coverage of FIFA World Cup

Share Copy link Facebook X Linkedin Bluesky Email...

31/03/2026

OpenDrives Shows Off Sports Expertise in Sports Business...

OpenDrives, a leader in software-defined video and rich media storage management solutions, will demonstrate several new innovations at the 2026 NAB Show in Apr...

31/03/2026

SDVI to Showcase Platform Enhancements New Technology Int...

At the 2026 NAB Show, SDVI will demonstrate how its Rally media supply chain management platform continues to give media operations teams the tools they need to...

31/03/2026

Boland Communications Introduces QD4K315HDR10 QD-OLED Ser...

Boland Communications today announced that at the 2026 NAB Show, it will introduce its new QD4K315HDR10, a 31.5-inch QD-OLED monitor delivering exceptional colo...

31/03/2026

NUGEN Audio CEO Dr Paul Tapper to Lead Presentation About...

Dr. Paul Tapper, CEO of NUGEN Audio, will lead an essential industry discussion at the 2026 NAB Show, examining whether dialog intelligibility is poised to beco...

31/03/2026

BCNEXXT at NAB 2026 - Turning Industry Pressure into Oppo...

BCNEXXT will use NAB 2026 to focus on how broadcasters can turn today's operational and market pressures into opportunity. Meeting with customers in the IAB...

31/03/2026

Mediagenix Showcases Semantic Intelligence Powered Title...

Mediagenix, a global leader in smart content solutions to profitably connect the right content to the right audience, will showcase its latest innovations at th...

31/03/2026

DHD Introduces AI-Based Audio Noise Reduction to XD3 IP C...

DHD announces that AI-based audio noise reduction is now available as a powerful new option for its XD3 IP Core. Developed in cooperation with ai-coustics, audi...

31/03/2026

PTZOptics to showcase intelligent video and camera contro...

PTZOptics will showcase its vision for intelligent video and advanced camera automation at NAB Show 2026 (#N1902). Through immersive demonstrations and technolo...

31/03/2026

Experience Commerce Wins Social Media Mandate for ICONIQA...

Experience Commerce, a leading full-service digital marketing agency and part of the Cheil SWA Group, has secured the social media mandate for ICONIQA Hotels & ...

31/03/2026

Fabric to Showcase Cloud-Native Origin Platform and Next-...

Fabric, the entertainment industry's leader in data and operations solutions, will showcase a major expansion of its media technology platform at NAB 2026, ...

31/03/2026

Boland Communications Introduces New QD-OLED Series Monitors

Share Copy link Facebook X Linkedin Bluesky Email...

31/03/2026

Carr Warns NFL Over Streaming Rights, Consumer Costs

Share Copy link Facebook X Linkedin Bluesky Email...

31/03/2026

Farhan Khan Appointed FCC Chief Information Officer

Share Copy link Facebook X Linkedin Bluesky Email...

31/03/2026

Federal Judge Pauses Nexstar/Tegna Merger

Share Copy link Facebook X Linkedin Bluesky Email...

31/03/2026

Boris FX Acquires Vegas Pro, Sound Forge, and Acid Pro

Boris FX Acquires Vegas Pro, Sound Forge, and Acid Pro Jessie Electa Petrov March 30, 2026 0 Comments The acclaimed VFX developer bolsters its award-w...

31/03/2026

Berklee India Exchange Presents Anirudh Varma Collective

Berklee India Exchange Presents Anirudh Varma Collective The collective will present a workshop on Hindustani classical music and a concert in collaboration w...

31/03/2026

Efficiency at Scale: NVIDIA, Energy Leaders Accelerating PowerFlexible AI Factories to Fortify the Grid

CERAWeek - dubbed the Davos of energy - is where policymakers, producers, techno...

30/03/2026

NAB 2026: Manifold to Demonstrate 400GbE COTS FPGA Support

Manifold Technologies, a Germany-based provider of cloud infrastructure for live broadcast production, will demonstrate support for 400GbE COTS FPGA accelerator...

30/03/2026

NAB 2026: Boland Communications Introduces QD-OLED Series Monitors

Boland Communications will introduce its QD4K315HDR10, a 31.5-inch QD-OLED monitor, at NAB Show 2026 (Booth C3519, April 18-22). The company is also introducing...

30/03/2026

NAB 2026: PTZOptics to Showcase Move 4K and Horizon Platform

PTZOptics will demonstrate its Move 4K PTZ cameras and Horizon web-based control platform at NAB Show 2026 (Booth N1902). Move 4K with Horizon is now available...

30/03/2026

NAB 2026: Net Insight to Showcase Updated Nimbra Edge

Net Insight will demonstrate the next version of Nimbra Edge, its orchestration and control layer for live media services across multi-domain environments, at N...

30/03/2026

NAB 2026: Appear to Showcase Live Production Processing

Appear ASA will exhibit at NAB Show 2026 (Booth W1531, April 19-22, Las Vegas). The company completed an IPO in November 2025. Our customer-first approach is ...

30/03/2026

NAB 2026: Harmonic Announces New Live Sports Streaming Capabilities

Harmonic has announced new capabilities for its sports streaming platform, covering multiview, programmatic advertising, in-stream advertising, and content wate...

30/03/2026

NAB 2026: Ateme to Showcase GenAI, Agentic AI, and Streaming

Ateme (Booth W1723) will demonstrate broadcast, streaming, and AI-driven media workflow solutions at NAB Show 2026. GenAI and Agentic AI Ateme will demonstrat...

30/03/2026

NAB 2026: Bitmovin's Player Web X Adds Advertising Support, Vertical Video, and Proprietary ABR Algorithm

Bitmovin has announced new capabilities for Player Web X, its web video player, ...

30/03/2026

NAB 2026: Brazil's Minister of Communications and FCC Commissioner To Speak

The 2026 NAB Show (April 18-22, exhibits April 19-22, Las Vegas Convention Center) will host Brazil's Minister of Communications, Frederico de Siqueira Filh...

30/03/2026

NAB 2026: EVS To Showcase Expanded Live Production Ecosystem

EVS will exhibit at NAB Show 2026 (Booth N1841), highlighting new products and updates across its live production portfolio, including the debut of T-Motion med...

30/03/2026

NAB 2026: Solid State Logic To Demonstrate Expanded Virtual System T Platform

Solid State Logic will demonstrate its virtualized System T platform at NAB Show 2026 (Booth C6907). Demonstrations will include the VTE1 virtual DSP engine, ne...

30/03/2026

NAB 2026: Globecast To Showcase Managed Media Services Approach

Globecast will exhibit at NAB Show 2026 (Booth W3335), highlighting its hybrid service model spanning satellite, IP, fiber, and cloud. The company will demonst...

30/03/2026

NAB 2026: IP Showcase Returns as IPMX Moves to Deployment

The Alliance for IP Media Solutions (AIMS), Advanced Media Workflow Association (AMWA), and the Video Services Forum (VSF) have announced that the IP Showcase w...

30/03/2026

NAB 2026: BBright To Demonstrate Single-Stream ST 2110 Playout

At NAB Show 2026 BBright will present a demonstration of its One Stream for the World concept, showing how a single ST 2110 playout stream can simultaneously ...

30/03/2026

NAB 2026: OpenDrives To Demonstrate New Storage and Edge Products

OpenDrives will demonstrate new products at NAB Show 2026, with two locations in the West Hall: a pod (W3443-E) in the Sports Business Hub and a cabana at W1158...

30/03/2026

Behind the Mic: Amazon Prime Hosts 90th Master Tournament With Host Terry Gannon

Behind The Mic provides a roundup of recent news regarding on-air talent, including new deals, departures, and assignments compiled from press releases and repo...

30/03/2026

Op-Ed: Preparing for Agentic AI in Live Sports

The economics of live sports streaming have changed. New rights models, cloud production tools, and lower-cost distribution have made it possible for high schoo...

30/03/2026

Movimento Strings from Sonora Cinematic

MPE-capable chamber strings library announced Alongside their collection of Kontakt instruments, Sonora Cinematic have been steadily introducing a series of...

30/03/2026

UJAM release Groovemate Latigo

Latin-inspired percussion instrument announced Built on a newly developed engine and interface, UJAM's latest instrument has been designed to create Lat...

30/03/2026

Best Service launch Desert Winds

Latest Eduardo Tarilonte collaboration announced The latest library to join Best Service's ever-growing range includes four solo wind instruments that c...