
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...
02/05/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
09/04/2026
Zixi will demonstrate IP-based live video workflow solutions at NAB Show 2026 (Booth W2057).
The industry is moving quickly toward IP-based distribution as br...
09/04/2026
Global women's elite sports revenues are expected to reach at least $3 billi...
09/04/2026
Monitor engineer Gavin Tempany mixed Kylie Minogue s Tension Tour on a Solid Sta...
09/04/2026
KOKUSAI DENKI Electric America will exhibit at NAB Show 2026 (Booth C5507), debu...
09/04/2026
With the 2025-26 NBA regular season concluded and the playoffs beginning next we...
09/04/2026
Telestream and Mimir have announced an integration connecting Telestream's V...
09/04/2026
Bitmovin has expanded its Live Encoding and Observability solutions to provide r...
09/04/2026
The Nashville Predators and Scripps Sports have announced a multi-year media rights agreement covering local preseason, regular season, and first-round playoff ...
09/04/2026
Advanced Systems Group, LLC has announced a partnership with Beam Dynamics to offer the Beam Asset and License Intelligence Platform to its clients. The platfor...
09/04/2026
Lawo has unveiled Edge One, a combined video and audio stagebox for broadcast and Pro AV workflows. The device will be on display at NAB Show (Booth C2108, Apri...
09/04/2026
The Society of Motion Picture and Television Engineers (SMPTE) will host the SMPTE ST 2110 IP Media Roadshow on Tuesday, April 21, 2026, at the Las Vegas Conven...
09/04/2026
The Atlanta Braves have completed upgrades to video displays in and around Truist Park ahead of the 2026 MLB season. The upgrades include the Delta Out-of-Town ...
09/04/2026
The University of Southern California has contracted Daktronics (NASDAQ: DAKT) of Brookings, South Dakota, to manufacture and install 22 LED displays across fou...
09/04/2026
Backlight, the media technology company behind Iconik and Wildmoka, will showcase its Creative Operations Platform at NAB Show 2026 (Booth N2829, April 19-22). ...
09/04/2026
MotoAmerica and V10 Entertainment have announced a partnership to broadcast MotoAmerica Superbike racing on VICE TV for the 2026 season. Coverage begins live on...
09/04/2026
Proton Camera Innovations has announced the appointment of Tod Musgrave as US Sa...
09/04/2026
Designed specifically for live sports broadcasting, new platform features IP-nat...
09/04/2026
Blending 1990s DNA, modern motion theory, and a distinctly colorful brand identi...
09/04/2026
Technical capability is essential, but long-term success often depends on how we...
09/04/2026
15 feature films, including fiction and documentaries, along with six short film...
09/04/2026
Spotify has always been about putting listeners in the driver's seat. Today, people don't just want more ways to spend their time; they want that time t...
09/04/2026
Our Chief Public Affairs Officer Dustee Jenkins shares how we're building a more positive experience for families on Spotify.
As Spotify's Chief Public...
09/04/2026
Festival season is upon us. From sun-soaked weekends out west to iconic stages in Chicago and New York, fans are getting ready to see their favorite artists liv...
09/04/2026
O Spotify sempre teve como foco colocar os ouvintes no controle. Hoje, as pessoas n o querem apenas mais formas de passar o tempo - elas querem que esse tempo s...
09/04/2026
Read the original note in English here.
Nossa Chief Public Affairs Officer, Dustee Jenkins, compartilha como estamos construindo uma experi ncia mais positiva ...
09/04/2026
New synth focuses on sci-fi scoring
Following their formation and debut releases in December 2025, Smokestack Sounds - the brainchild of composer and produc...
09/04/2026
Latest version set for May 2026 launch
Reason Studios have revealed that the latest version of their DAW software will be launching in May 2026. Currently a...
09/04/2026
New EQ aimed at mix-bus & mastering duties
Shy Audio's first two releases focused on the past, delivering recreations of the budget mixers that were com...
09/04/2026
Based on John Galsworthy's novels known collectively as The Forsyte Saga a...
09/04/2026
The Forsytes has been renewed for a third season before the period drama has even premiered on PBS Masterpiece.
The adaptation of John Galsworthy's novel, ...
09/04/2026
IThe BBC has commissioned new drama The Witch Farm, starring Gabrielle Creevy (T...
09/04/2026
The next big thing To help broadcasters fully embrace dynamic hybrid workflows, Calrec will make a major announcement that unlocks even more freedom for broadca...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Purpose Built Monitoring From Live Production to Master Control to OTT, Across On Prem and Cloud Environments
At the 2026 NAB Show (April 19-22, Las Vegas Con...
09/04/2026
Purpose Built Monitoring From Live Production to Master Control to OTT, Across On Prem and Cloud Environments
At the 2026 NAB Show (April 19-22, Las Vegas Con...
09/04/2026
New advances meet surge in demand for broadcast-grade IP migration as C-band spectrum auctions approach
LTN announces major enhancements to its purpose-built g...
09/04/2026
Hitomi Broadcast has expanded its sales team with the addition of Nicola Milburn as Technical Sales Manager. In this role, Nicola will work with customers and p...
09/04/2026
Revolutionary combined solution brings sub-second latency, resilient delivery, and workflow orchestration to global broadcasters and digital platforms
Layercak...
09/04/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
09/04/2026
Yospace exceeded 10 billion dynamically stitched ads in a single month, reaching 11.6 billion as ad-supported streaming surged. Driven by a packed global sports...
09/04/2026
Bitmovin has expanded its Live Encoding and Observability solutions to provide true end to end, real time insights across live streaming workflows, from encodin...
09/04/2026
Leyra has announced the launch of Icelandic public broadcaster R V's streaming service on Samsung and LG Smart TVs. R V is the first public broadcaster to d...