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...

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 ...

15/04/2026

Autocue to Mark 2026 NAB Show Debut of its New PTZ Prompter

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Locality Deploys Nielsen's Media Data Engine

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Viant Announces Agreement to Acquire TVision

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Evergent introduces Agentic Revenue Orchestration Platfor...

Evergent introduces its Agentic Revenue Orchestration Platform, transforming how subscription businesses across direct-to-consumer streaming, pay-TV, telecommun...

15/04/2026

CentralCast Delivers Breakthrough Efficiencies to Public...

Harmonic's XOS Media Processor Delivers Exceptional Video Quality to More than Half of U.S. Public Media Viewership Harmonic (NASDAQ: HLIT) today announce...

15/04/2026

DPA N Series Wireless System Unlocks Duplex Gap and Guard...

LONGMONT, COLORADO, APRIL 15, 2026 DPA Microphones N Series Digital Wireless System users in North America can now take full advantage of the system's exc...

15/04/2026

Cobalt Iron Launches Compass Tape Gateway Modernizing IBM...

Cobalt Iron, a leading provider of SaaS-based enterprise data protection, today announced the launch of Compass Tape Gateway (CTG), a transformative enhancemen...

15/04/2026

Disguise to Showcase Cutting-Edge Experience Tech for Sports, Broadcast and More at NAB 2026

Disguise to Showcase Cutting-Edge Experience Tech for Sports, Broadcast and More...

15/04/2026

Arooj Aftab Makes the Music She Wants to Hear

Arooj Aftab Makes the Music She Wants to Hear The singular artist explores the juxtaposition of grief and joy, dark and light, in her distinctive sound. Apri...

15/04/2026

Panasonic, NEP Partner on IP-Based Live Production

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Encompass Digital Media Powers Global Cloud Transformatio...

Interra Systems, a provider of end-to-end quality assurance solutions for the digital media industry, is proud to announce its central role in the digital trans...

15/04/2026

Viaccess-Orca Powers MasOranges Multi-Brand TV Expansion...

VO Integrates Client-Side and Server-Side Ad Technologies with its Secure Video Player and Segmentation Tools, Leveraging Broadpeak's SSAI and BPK SmartLib ...

15/04/2026

TMT Insights Unveils AI at NAB 2026

TMT Insights, a leader in professional services and software development for the media and entertainment (M&E) industry, today announced the launch of TMT AI at...

15/04/2026

Encompass Digital Media and Oracle Cloud Infrastructure E...

Encompass Digital Media, a global leader in managed broadcast and cloud-based media services, today announced an expanded partnership with Oracle Cloud Infrastr...

15/04/2026

Middleman Software Debuts PhaseLock Technology and Expand...

Middleman Software, a leading provider of signaling and synchronization solutions for broadcast and streaming workflows, today announced it will unveil PhaseLoc...

15/04/2026

Deity Announces PR-4 Compact Field Recorder

Deity Microphones today announced the PR-4, a compact six-track field recorder featuring four inputs, 32-bit float recording, advanced routing, and a workflow-f...

15/04/2026

Blackmagic Design Announces Fairlight Live

Blackmagic Design Announces Fairlight Live Brie Clayton April 15, 2026 0 Comments Powerful software-based live audio mixer with support for SMPTE-2110...

15/04/2026

Haivision Launches Falkon X4 5G Transmitters

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

JB&A Spotlights Exhibitors Ahead of Pre-NAB 2026 Technology Event

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Wave Central, EVS Announce SMPTE ST 2110 Interop Collaboration

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Top Reason for Subscribing to Pay TV Is Live News and TV, Survey Finds

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

NAB Leadership Foundation Honors Outstanding Broadcasters

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Wisycom Expands MPR60 With New Multichannel IFB Mode

Share Copy link Facebook X Linkedin Bluesky Email...

15/04/2026

Thomas Riedel Acquires Premium Manufacturer ARRI

Strategic Alignment With the Riedel Group for Innovation and Growth Thomas Riedel, founder and owner of Riedel Communications and the Riedel Group, has acqui...

15/04/2026

Iyuno Deploys SDVI Rally Platform to Accelerate and Scale...

SDVI, the leading platform provider for cloud-native media supply chains, today announced that the company's Rally platform has been deployed by Iyuno Media...

15/04/2026

Frequency Leads the Industry in Live Local News on FAST

Frequency, the engine behind many of the worlds leading streaming television channels, has become the platform of choice for leading U.S. broadcasters bringing ...

15/04/2026

Harmonic Introduces Breakthrough AI Orchestration Service...

New Service Simplifies Integration of AI Applications with Exceptional Reliability and Security SAN JOSE, Calif. April 14, 2026 Harmonic (NASDAQ: HLIT) t...

15/04/2026

VIDI and Media Links Bring Scalable IP Transport to Germa...

During the 2025 off-season, VIDI completed a major upgrade of the broadcast infrastructure across all 36 stadiums in Germany's 1st and 2nd Bundesliga. The p...

15/04/2026

Clear-Com Introduces Transformational Arcadia and Eclipse...

Clear-Com announced significant updates to its award-winning Arcadia Central Station as well as enhancements to the Eclipse HX Digital Matrix System now runn...

15/04/2026

Shotoku Introduces the World to Aura P2 PTZ Prompter Panner at NAB SHOW 2026

Shotoku Introduces the World to Aura P2 PTZ Prompter Panner at NAB SHOW 2026 Brie Clayton April 15, 2026 0 Comments New system removes PTZ pan restric...

15/04/2026

LiveU Announces Expanded Collaboration with Sony at NAB Show, Adding Direct File Workflow Integration

LiveU Announces Expanded Collaboration with Sony at NAB Show, Adding Direct File...

15/04/2026

This 24-Hour Performance Art Piece Needs Your Participation

This 24-Hour Performance Art Piece Needs Your Participation Keefer Glenshaws latest project is about collaborating with the Berklee community and beyond. Apr...

15/04/2026

Rethinking AI TCO: Why Cost per Token Is the Only Metric That Matters

Traditional data centers only stored, retrieved and processed data. In the generative and agentic AI era, these facilities have evolved into AI token factories....

15/04/2026

RT announces new crime drama The Yank starring Kate Mulgrew and Colm Meaney

Two Cities Television and Keeper Pictures to produce six-part series in association with Screen Ireland for RT and ITV Studios RT has commissioned Two Citie...

15/04/2026

RT unveils The Signal' a specially commissioned 60-second film to celebrate RT100

RT 100 RT unveils The Signal' a specially commissioned 60-second film ...

15/04/2026

New Adobe Premiere Color Grading Mode Accelerated on NVIDIA GPUs

The NAB Show 2026 trade show, running April 18-22 in Las Vegas, is set to showcase a wave of new features and optimizations for top video editing applications. ...

14/04/2026

ToolsOnAir and Omnistream Bring Mobile SRT Contribution into Professional 24/7 Playout and Live News Workflows

ToolsOnAir and Omnistream Bring Mobile SRT Contribution into Professional 24/7 P...

14/04/2026

NAB 2026: Haivision Launches Falkon X4 5G Mobile Video Transmitter

Haivision has announced the Falkon X4, a 5G mobile video transmitter for live broadcast and remote production. The device will be showcased at NAB Show 2026. ...

14/04/2026

SVG New Sponsor Spotlight: Stripe TVs Matthew Pavey on Making Live-Production Tech More Portable, Intuitive, and Accessible

Founded by veterans of the production-truck world, Stripe TV was born out of a d...

14/04/2026

Studio Berlin Adds LDX 135 and LDX 180 Camera Systems from Grass Valley

Grass Valley has expanded its partnership with Studio Berlin, supplying 12 LDX 135 UHD/HDR camera systems and 12 LDX 180 Super 35mm cinematic cameras, including...

14/04/2026

LTN Appoints Mark Romano and Edward Cox to Vice President Roles

LTN has announced two senior appointments ahead of NAB Show 2026: Mark Romano as Vice President, Multichannel Platforms, and Edward Cox as Vice President, Sales...

14/04/2026

Agor and Sennheiser to Deploy Largest Spectera System to Date at Eurovision Song Contest 2026

Sennheiser and Italian rental company Agor have begun preparations for their Eu...

14/04/2026

DAZN and ADI Predictstreet Announce Prediction Market Partnership Ahead of FIFA World Cup 2026

DAZN and ADI Predictstreet have announced a partnership to integrate ADI Predict...

14/04/2026

Deltatre Completes Digital Platform for Serie A as Part of Four-Season Partnership

Deltatre has announced the completion of a direct-to-fan website and app for Leg...