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 ...

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...

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...

11/05/2026

Ross Production Services 48-Foot HyperMax-1 Truck Quickly in Demand

New production unit features not only wealth of Ross gear but also Sony cameras, Canon lenses, and a Calrec Argo S audio board...

11/05/2026

Solid State Logic Launches TCA Tour Portable Audio Production System

Solid State Logic (SSL) has announced TCA Tour, a portable fly-away audio production system built from System T components for broadcast, touring, and live prod...

11/05/2026

Riedel Communications Named Official Connectivity Integration Provider for Glasgow 2026 Commonwealth Games

Riedel Communications has announced it will serve as Official Connectivity Integ...

11/05/2026

G&D and NETGEAR AV Launch KVM-over-IP Plugin for Automated Network Configuration

Guntermann and Drunck (G&D) and NETGEAR AV have announced a plugin that automates network configuration for G&D KVM-over-IP deployments on NETGEAR AV Line infra...

11/05/2026

The Famous Group and Elite Edge Announce Unified Ownership

The Famous Group (TFG) and Elite Edge, a production studio specializing in live-action production, show opens, set design, and fabrication for sports and live e...

11/05/2026

SVG All-Stars: Odair Auger, Tech Project Manager, NBCUniversal Telemundo Enterprises

The native of S o Paulo, Brazil, will play a crucial role in the broadcaster'...

11/05/2026

Cobalt Digital to Showcase IPMX/ST 2110 Ecosystem at BroadcastAsia 2026

Cobalt Digital will exhibit its IPMX/ST 2110 product lineup at BroadcastAsia 2026 (Stand 5D2-4), anchored by the COBALT blueCORE family of standalone signal pro...

11/05/2026

Interra Systems to Demonstrate QC, Monitoring, and Captioning Solutions at BroadcastAsia 2026

Interra Systems will exhibit at BroadcastAsia 2026 (Stand 5C1-10), demonstrating...

11/05/2026

T-Mobile Deploys 5G and AI Tools Across 2026 PGA Championship

T-Mobile is serving as a technology partner for the 2026 PGA Championship at Aronimink Golf Club in Newtown Square, Pennsylvania, deploying 5G connectivity and ...

11/05/2026

Vizrt Named Official Technical Supplier of Eurovision Song Contest 2026

Vizrt has announced it has been named an Official Technical Supplier of the Eurovision Song Contest 2026, in partnership with host broadcaster ORF. The 70th edi...

11/05/2026

WNBA and AWS Announce Multi-Year Partnership

The WNBA and Amazon Web Services (AWS) have announced a multi-year partnership making AWS the Official Cloud and Cloud AI Partner of the WNBA. AWS is also joini...

11/05/2026

NAB 2026: kronehit Awards Lawo and SLG Broadcast Contract for Full Studio Modernization

Austrian private broadcaster kronehit publicly awarded SLG Broadcast AG and Lawo...

11/05/2026

Behind The Mic: PGA Championship Changing Weekday Announcer Lineup for 2026 Tournament

Behind The Mic provides a roundup of recent news regarding on-air talent, includ...

11/05/2026

Eurovision at 70: The Biggest Hits, Artists, and Trends From the Iconic Song Competition

As Eurovision fans gear up to celebrate the 70th anniversary of the iconic song ...

11/05/2026

Pelo Spotify, artistas brasileiros geraram aproximadamente R$ 2 bilhes em royalties em 2025

Pela primeira vez na hist ria, o Brasil figura entre os oito maiores mercados de...

11/05/2026

Bastl Instruments showcase the Kalimba

New desktop instrument focused on tactile performance Bastl Instruments have announced the Kalimba, a new desktop instrument that combines physical modellin...

11/05/2026

1010music release the blackbox 2

Compact sampling workstation gains new features 1010music have announced the blackbox 2, a new version of their compact standalone sampler designed for DAWl...

11/05/2026

KOMA Elektronik Monoplex Eurorack sequencer

Performance-focused sequencer with microtonal control Berlin-based KOMA Elektronik have announced Monoplex, a new 42HP Eurorack sequencer designed for hands...

11/05/2026

IK Multimedia launch the Tonex One+

Boasts wireless control from mobile devices The latest iteration of IK Multimedia's compact amp and effects modelling pedal expands on the capabilities ...

11/05/2026

Transfigured Orchestra Vol 3: Cinema Brass from Sonora Cinematic

Spans traditional orchestral and experimental sounds Sonora Cinematic have recently released the third instalment in their Transfigured Orchestra series, de...

11/05/2026

SUPERBOOTH 2026 Video Show Reports

Our exhibition coverage Watch all our SUPERBOOTH 2026 video coverage in one place. Check back to this page regularly as we will be updating with more video ...

11/05/2026

You're not meant to look at an Eclipse, but you won't be able to take your eyes off Delta's Eurovision staging

You're not meant to look at an Eclipse, but you won't be able to take yo...

11/05/2026

L3Harris Reaches Over 50% in FAA Telecommunications Modernization

L3Harris has completed more than 50% of a nationwide effort to rebuild the invisible backbone of America's airspace....

11/05/2026

aconnic presents at Equity Forum German Spring Conference 2026, Frankfurt to engage with investors and analysts

aconnic AG (ISIN: DE000A0LBKW6), Munich, is participating in the Equity Forum Ge...

11/05/2026

CBS Sacramento Debuts New AR/VR Studio

Share Copy link Facebook X Linkedin Bluesky Email...

11/05/2026

Gray Media Advances James Fitch to Senior VP, News Services

Share Copy link Facebook X Linkedin Bluesky Email...

11/05/2026

Smarter Monetization Stronger Retention and PurposeDriven...

As Asia Pacific's streaming market continues to evolve, operators across the region are rebalancing their strategies and shifting their focus from subscribe...

11/05/2026

QuickLink to Highlight Latest StudioEdge Models StudioPr...

LONDON, MAY 11, 2026 QuickLink, a leading provider of award-winning video production and remote guest contribution solutions, will showcase its latest innovat...

11/05/2026

Cobalt Digitals BroadcastAsia Line up Highlights Flexible...

Cobalt Digital's BroadcastAsia Line-up Highlights Flexible End-to-End IPMX/ST 2110 Ecosystem Award-winning blueCORE standalone signal processors at the he...

11/05/2026

Encompass and VideoMagic Launch Altitude Intelligence to...

Encompass Digital Media, in partnership with VideoMagic International, announced at NAB 2026 the launch of Altitude Intelligence, an AI-powered platform designe...

11/05/2026

Louis Libin Preps for the World Cup's Spectrum Crunch

Share Copy link Facebook X Linkedin Bluesky Email...

11/05/2026

Report: Broadcast Employment Hard Hit by AI

Share Copy link Facebook X Linkedin Bluesky Email...

11/05/2026

Alfalite installs 150 LED panels in Torre Iberdrola audit...

Alfalite, the only European manufacturer of LED screens, has completed a major new corporate installation in Spain with the upgrade of the auditorium at Torre I...

11/05/2026

Fox Corporation Reports Third Quarter Fiscal 2026 Financial Results

Fox Corporation Reports Third Quarter Fiscal 2026 Financial Results NEW YORK, NY, May 11, 2026 - Fox Corporation (Nasdaq: FOXA, FOX; FOX or the Company ) t...

11/05/2026

Arvato Systems becomes a member of InsurLab Germany

Arvato Systems Becomes a Member of InsurLab Germany Collaboration in the insurance industrys leading innovation network G tersloh - Arvato Systems has joine...

11/05/2026

A Predator in Plain Sight: New true-crime podcast reveals definitive story of pirate radio DJ and abuser Eamon Cooke

Pirate Predator uncovers new information from victims and survivors of abuse on ...

10/05/2026

Berklee Honors Jacob Collier, Jill Scott, and Vinnie Colaiuta at 2026 Commencement

Berklee Honors Jacob Collier, Jill Scott, and Vinnie Colaiuta at 2026 Commenceme...

10/05/2026

RT ALL-IRELAND DRAMA FESTIVAL WINNERS ANNOUNCED

RT ALL-IRELAND DRAMA FESTIVAL WINNERS ANNOUNCED DURING GALA AWARDS STREAMED LIVE ON RTE.IE/CULTURE Kilmeen Drama Group hailing from Rossmore, Co. Cork Scoops ...

09/05/2026

Bastl Instruments showcase Kalimba

New desktop instrument focused on tactile performance Bastl Instruments have announced Kalimba, a new desktop instrument that combines physical modelling, F...

09/05/2026

1010music release blackbox 2

Compact sampling workstation gains new features 1010music have announced blackbox 2, a new version of their compact standalone sampler designed for DAWless ...

09/05/2026

New SoundApp ARA Plugin Transforms Boris FX CrumplePop

New SoundApp ARA Plugin Transforms Boris FX CrumplePop Jessie Electa Petrov May 9, 2026 0 Comments CrumplePop 2026.5 streamlines music, voice, and cin...

09/05/2026

Celebrating a TV Legend: Sir David Attenborough

Share Copy link Facebook X Linkedin Bluesky Email...

09/05/2026

Playmetrics Acquires SportsEngine From Versant

Share Copy link Facebook X Linkedin Bluesky Email...

08/05/2026

NBC Sports, Peacock Scale Vertical-Video Production Across Sports - and Beyond - Ahead of FIFA World Cup 2026

NBC's 9:16 live-production workflows power Courtside Live, Rinkside Live, Vi...

08/05/2026

ESPN Pieces Together Production Strategy After WNBA's Unsettled Offseason

Native 1080p HDR productions will rely on a mix of remote workflows from Bristol and Los Angeles Despite another prosperous WNBA season in 2025, there was no g...

08/05/2026

SVG GameDay, Ep. 14: Buffalo Sabres' Autumn Bolton - Bringing Back Better Days at KeyBank Center

In-venue and creative video staffers at the professional and collegiate level ha...