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...

27/02/2026

Atomos Introduces Ninja RAW HDR Monitor-Recorder At CP+ Trade Show

Share Copy link Facebook X Linkedin Bluesky Email...

27/02/2026

Scripps to Reacquire 23 ION Stations

Share Copy link Facebook X Linkedin Bluesky Email...

27/02/2026

Survey: 88% of Sports Execs Bullish on Industry's Prospects

Share Copy link Facebook X Linkedin Bluesky Email...

27/02/2026

Chyron Releases Weather 2.3 With New Data and Automation Features

Share Copy link Facebook X Linkedin Bluesky Email...

27/02/2026

Samba: Essentials, Utilities Tally Most Ad Impressions in 2nd-Half 2025

Share Copy link Facebook X Linkedin Bluesky Email...

27/02/2026

TVB: Linear TV Still King

Share Copy link Facebook X Linkedin Bluesky Email...

27/02/2026

AJA U-TAP Helps Stary Technologies with Courtroom Evidenc...

Video is one of the lawyer's most powerful storytelling tools in civil litigation today, whether used to transport jurors to an incident scene or challenge ...

27/02/2026

Foundry releases Nuke 17-0

Creative software developer Foundry today released Nuke 17.0, the latest version of its powerful compositing tool for visual effects and animation. Marking one ...

27/02/2026

KRK helps Kryz Reid Keep Third Eye Blind Sounding Sharp O...

In a sun-drenched Los Angeles studio filled with guitars, laughter, and the low thrum of KRK monitors, Third Eye Blind's Kryz Reid balances rockstar energy ...

27/02/2026

Atomos Announces Ninja RAW Monitor-Recorder

Atomos announces the launch of Ninja RAW, a 5-inch HDR monitor-recorder designed to give filmmakers, content creators, and broadcasters an uncompromising and af...

27/02/2026

Marshall Electronics CV228 Lipstick Cameras Capture Criti...

FM, leaders in commercial property insurance, is utilizing Marshall Electronics CV228 Weatherproof Lipstick Cameras to capture critical fire testing data inside...

27/02/2026

Telestream Advances Production-Ready AI Across Its Produc...

Telestream, global leader in media workflow technologies, today announced expanded practical AI enhancements across its Vantage, Vantage Cloud, EDC, Stanza, and...

27/02/2026

Teatro alla Scala Elevates Backstage Communication with R...

Riedel Communications today announced that Fondazione Teatro alla Scala has deployed a comprehensive wireless intercom solution, leveraging Riedel's Bolero,...

27/02/2026

Screen Australia announces Rachel Perkins as Director of First Nations Strategy

27 02 2026 - Media release Screen Australia announces Rachel Perkins as Director of First Nations Strategy Rachel Perkins. Photo credit: John Platt. Screen ...

26/02/2026

NHL, Cosm Install C360 10.5K Capture Systems at All 32 Arenas

Multi-angle coverage, on-demand access to ultra-high-resolution video are provided for replays and clips across multiple distribution channels The NHL and Cosm...

26/02/2026

Advanced Systems Group Promotes Jody Boatwright to Chief Strategy Officer

Advanced Systems Group, LLC (ASG), a technology and services provider for media creatives and content owners, has appointed Jody Boatwright as Chief Strategy Of...

26/02/2026

TikTok, MLB Expand Multi-Year Global Content Partnership

As players report to Spring Training, TikTok and MLB announce an expanded content partnership bringing baseball fans around the world closer to the game through...

26/02/2026

Chyron Announces 2026 Designer of the Year Competition

Chyron announces its 2026 Designer of the Year Competition to be awarded during a live stream from the 2026 NAB Show in Las Vegas. This year's competition i...

26/02/2026

Appear's X Platform Now SRT Verified for YouTube Live Content Delivery

Appear, which specializes in live production technology, announces that its X Platform has been officially verified by YouTube for Secure Reliable Transport (SR...

26/02/2026

Adder Technology Enters New Era of Strategic Engagement with Launch of Customer Experience Center

Adder Technology, a specialist in connectivity solutions and high performance IP...

26/02/2026

Alcom Elevates Headend Video Service with Harmonic to Drive Growth

Harmonic announces that Alcom, a leading telco operator in Finland, is powering its next-generation white-label headend video service with Harmonic's XOS Ad...

26/02/2026

ESPN, Disney+ to Deliver More Banana Ball Games Than Ever as Collaboration Expands in 2026

ESPN, Disney , and the Savannah Bananas announce a 25-game exclusive package in ...

26/02/2026

SailGP Announces Broadcast Extensions with Globo and BandSports in Brazil for 2026 Season

Brazilian broadcaster Globo has returned as the official broadcast partner of th...

26/02/2026

NDI Appoints JRS as Official Distribution Partner for China

NDI, which concentrates in plug-and-play IP video connectivity, announces a strategic partnership with Jiaruisen (JRS), a Shenzhen-based technology distributor,...

26/02/2026

SVG Students To Watch: Noah Boudolf, Clemson University

The Charleston, SC, native has excelled as a live-camera operator on Tigers broadcasts In the live-sports-video industry, the future is bright. Our series SVG ...

26/02/2026

Behind The Mic: ESPN, Tennis Channel Sign New Deals for 2026 Tennis Analysts

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...

26/02/2026

SVG in Indy: Beyond the Colts, Lucas Oil Stadium Stays Busy With NFL Scouting Combine, NCAA Men's Final Four

Supported by partners, the in-venue production team keeps videoboard-show qualit...

26/02/2026

SVG New Sponsor Spotlight: CAMB.AI's Akshat Prakash on AI Translation and the Future of Live Sports Localization

CAMB.AI provides AI speech synthesis and translation with a focus on localizatio...

26/02/2026

SVG Sit-Down: AWS's Regina Rossi on the Company's New Vertical-Video-Cropping Tool

AWS Elemental Inference could help sports broadcasters learn to love AI This we...

26/02/2026

Rohde & Schwarz awarded contract by Israel Airports Authority for QPS201 security scanners

Rohde & Schwarz awarded contract by Israel Airports Authority for QPS201 securit...

26/02/2026

Rohde & Schwarz highlights its unique CMX500 one-box tester tailored for NTN testing at MWC Barcelona 2026

Rohde & Schwarz highlights its unique CMX500 one-box tester tailored for NTN tes...

26/02/2026

Rohde & Schwarz high-efficiency transmitter powers next-gen broadcast services in Serbia

Rohde & Schwarz high-efficiency transmitter powers next-gen broadcast services i...

26/02/2026

Rohde & Schwarz highlights its comprehensive embedded systems test solutions at embedded world 2026

Rohde & Schwarz highlights its comprehensive embedded systems test solutions at ...

26/02/2026

Rohde & Schwarz to showcase spectrum security and network efficiency solutions at Mobile World Congress 2026

Rohde & Schwarz to showcase spectrum security and network efficiency solutions a...

26/02/2026

Rohde & Schwarz and Broadcom showcase first Wi-Fi 8 RF signaling tests, paving way for next-gen connectivity

Rohde & Schwarz and Broadcom showcase first Wi-Fi 8 RF signaling tests, paving w...

26/02/2026

Rohde & Schwarz advances AI-RAN testing using digital twins with NVIDIA

Rohde & Schwarz advances AI-RAN testing using digital twins with NVIDIA Rohde & Schwarz, in collaboration with NVIDIA, continues to drive AI-RAN innovation fo...

26/02/2026

Rohde & Schwarz and LITEON demonstrate highthroughput 5G femtocell testing with the PVT360A

Rohde & Schwarz and LITEON demonstrate high throughput 5G femtocell testing with...

26/02/2026

Cobalt Digital Returns to ISE with Comprehensive Lineup of IPMX-Ready Solutions

Industry's only IPMX-compliant audio monitor takes centerstage along with IPMX multiviewers, gateways, converters and routers Champaign, IL - January 26, 2...

26/02/2026

Cobalt Digital Products Receive IPMX Product Certification Following Inaugural Testing Event

Cobalt among first manufacturers to achieve verified compliance status with IPMX...

26/02/2026

COBALT ARIA AUD-MON Receives Best of Show Awards at ISE 2026

Barcelona - 20 February 2026 Cobalt Digital, the leading designer and manufacturer of award-winning ST 2110 and SDI signal processing products, and a founding...

26/02/2026

SES Extends EGNOS GEO-1 Satellite Service to Power Precise Navigation Across Europe

The agreement ensures Europe's satellite-based augmentation continues enhanc...

26/02/2026

AWS Launches New Tool for Vertical Video Conversion

Share Copy link Facebook X Linkedin Bluesky Email...

26/02/2026

Broadpeak Launches Multiview For Live Sports at 2026 NAB Show

Share Copy link Facebook X Linkedin Bluesky Email...

26/02/2026

Griffin Media Rolls Out Bitcentral Core News At KWTV, KOTV

Share Copy link Facebook X Linkedin Bluesky Email...

26/02/2026

Adobes New Firefly QuickCut Gives Video Editors a Starting Point

Share Copy link Facebook X Linkedin Bluesky Email...