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 ...

12/11/2026

The Software-Defined Shift: A Discussion on the Technologies Reshaping Live Sports Production

Industry leaders examine how Dynamic Media Facility, Media eXchange Layer, and c...

12/11/2026

SVG Students to Watch: Addison Carnow, University of North Carolina

The junior Tar Heel is embracing the technical and creative challenges of live production while emerging as a leader and mentor in the control room...

12/11/2026

Gracenote Survey: 78% of Viewers 18-24 Want a Single Program Guide Across Streaming Services

Gracenote, Nielsen's content intelligence business, has released its fifth a...

12/11/2026

RTL Deutschland and NHL Expand Partnership, Bringing NHL Monday Night Hockey to Free-to-Air TV in Germany

RTL Deutschland will bring the NHL to free-to-air TV in Germany starting Nov. 30...

12/11/2026

Clear-Com Supports Global Student Broadcast On Air 2026 With Station-IC, Eclipse HX and FreeSpeak Cell

Clear-Com supported On Air 2026, a 24-hour student-led broadcast connecting 45 u...

12/11/2026

uniqFEED Opens Remote Operations Center in Madrid for LaLiga Virtual Advertising

uniqFEED has opened a Remote Operations Center (ROC) in Madrid, Spain. It is already operational, delivering virtual advertising for LaLiga matches. The ROC is ...

12/11/2026

Disney, ESPN and NBA Present Third Dunk the Halls Animated Christmas Day Game

Disney, ESPN and the NBA will present Dunk the Halls, the third real-time animated NBA game using Sony's Beyond Sports data visualization technology, on Chr...

12/11/2026

Van Wagner Launches RELAY Digital Platform for College Athletics Websites and Apps

Van Wagner has launched Van Wagner RELAY, a digital platform for official athlet...

12/11/2026

Vizrt Acquires Chyron in Major Consolidation of Broadcast Graphics Market

Deal brings together two of the industry's most established graphics brands and significantly expands Vizrt's footprint in U.S. sports and regional broa...

12/11/2026

Euro TV Upgrades OB Van with Lawo mc36 MkII and VSM

Euro TV Production GmbH of Austria has upgraded its outside broadcast vehicle with Lawo technology. The mc 36 Classic console in service since 2019 was replaced...

12/11/2026

Tagboard Launches Spark Resize Beta to Convert Graphics to New Aspect Ratios

Tagboard has launched Spark Resize, an AI-assisted tool now in beta that takes an existing graphic and produces a new version for a different aspect ratio or sc...

12/11/2026

At Second-Annual SVG LIVE! Event, Live Production's Biggest Names Go Inside the Tentpole Playbook

Ben Winston, Glenn Weiss, and FIFA's Jenni-Lee Van Gelder headlined a day fo...

12/11/2026

AWS, NFL Launch Next Gen Trends, Opening In-Season Tracking Data to Fans

Free interactive platform visualizes team tendencies, formations, and schemes, updated weekly...

12/11/2026

Sports Broadcasting Hall of Famer Charlie Jablonski: A True Broadcasting Power Broker

Sports Broadcasting Hall of Famer Charlie Jablonski's broadcasting career is...

12/11/2026

UVI release Twin 88 Keys

Blend between concert grand & vintage electric pianos UVI's latest release combines a concert grand with a vintage electric piano in a single instrument...

12/11/2026

Universal Audio reintroduce UAD Cooper Time Cube Delay

Native version of popular effects plug-in arrives Many of the plug-ins that used to require Universal Audios Apollo interfaces or DSP accelerators have made...

12/11/2026

Audient launch the iD Mk3 line-up

Four next-generation interfaces announced Following on from the release of their new flagship Thunderbolt interfaces, Audient have refreshed the design of t...

12/11/2026

Rohde & Schwarz and Connektica showcase automated RF test systems for satellite payloads and radar at Space Tech Expo

Rohde & Schwarz and Connektica showcase automated RF test systems for satellite ...

12/11/2026

78% of young adults want a single program guide across their streaming services, up from 58% last year

Gracenote's 2026 State of Play report signals a rising retention risk: More ...

12/11/2026

Blackmagic Design Announces Blackmagic Ambisonic Microphone

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

12/11/2026

CES Honors LGs Signature OLED, Wallpaper TVs

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

12/11/2026

Broadsmart launches monetization capabilities to power OT...

Broadpeak and Magnite enable advertising on Afree TV to unlock new revenue opportunities for African content providers Broadsmart, a technology integrator deli...

12/11/2026

PlayBox Neo makes an impact delivering flexible broadcast...

PlayBox Neo is perceived in the industry as an innovator way ahead of its time, already making a profound impact in the Asia-Pacific region, where the company i...

12/11/2026

Filmbankmedia selects Fincons Group s AllRights to manage...

This agreement marks the next step in a multi-year digital transformation programme as distribution expands across more clients and markets, requiring reliable ...

12/11/2026

Euro TV Upgrades OB Vehicle With Lawo Console

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

12/11/2026

Scripps Names Christina Hartman Chief Technology Officer

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

12/11/2026

ABC Names Martin Ortiz GM of WTVD-TV Raleigh-Durham

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

12/11/2026

Adobe, Google Expand AI and Creative Tool Integration

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

12/11/2026

NIH awards $7 million to study what makes immune responses last

LA JOLLA, CA-Central to many immune responses are antibodies, which identify foreign substances and help remove them from the body. The immune cells that produc...

12/11/2026

Bill & Ted Rock Opera Taken to New Heights After Student Workshop

Bill & Ted Rock Opera Taken to New Heights After Student Workshop Emerging artists from Berklee, Boston Conservatory, and Emerson collaborated with industry p...

12/11/2026

U unveils first look teaser for brand-new drama, The Cadburys

Image available HERE Teaser available HERE A teaser for The Cadburys (6x60') has been released, introducing audiences to the core family of George (Harry ...

12/11/2026

HPA Sets 2027 Tech Retreat Theme Around a Changing Industry

The Hollywood Professional Association (HPA) today announced the theme and program focus for the 2027 HPA Tech Retreat, taking place Feb. 14-18, 2027 in La Quin...

12/11/2026

Jeremiah Slovarp on building Jereco from the ground up in rural Montana

An island in rural MontanaJeremiah Slovarp owns Jereco in Bozeman, Montana, and teaches music technology and recording arts at Montana State University. He star...

12/11/2026

Introducing Ask the AI GP'

Who am I and whats an AI GP? Im Kathryn Hodgkinson, and Ive recently qualified as an Artificial Intelligence Governance Professional (AIGP), a certification awa...

12/11/2026

RT Coverage of European Political Community Summit in Dublin

RT will provide extensive coverage of the European Political Community Summit in Dublin across television, radio and online on Thursday, 12 November 2026. As p...

11/11/2026

Charlotte Hornets Become One of NBAs First Teams With WiFi 7 at Spectrum Center

Hornets Sports & Entertainment (HSE) and Spectrum have installed WiFi 7 as part of Spectrum's Managed WiFi solution within Charlotte's recently renovate...

11/11/2026

The Minor League Resolution Crisis: Bridging the Gap Between Living Room 4K and In-Venue Reality

As 4K displays normalize in living rooms and economy flights, aging minor league...

11/11/2026

Northwestern University Taps Grass Valley for Control Room Tech at Ryan Field

Northwestern University has deployed Grass Valley production switching and camera technology at its new Ryan Field stadium in Evanston, Illinois. The installati...

11/11/2026

Central Christian Church Links Remote Production Teams With Clear-Com's Gen-IC Virtual Intercom

Central Christian Church has transformed communication across its live productio...

11/11/2026

Capital One Arena Receives New Tech Enhancements to Upgrade the Fan Experience

Monumental Sports & Entertainment developed the new Cisco Command Center for all of the building's technology Prior to the start of the busy October schedu...

11/11/2026

OutKick Debuts New Studio for The Craig Carton Show in New York as Nashville Powers Distributed Production Operation

The new Manhattan set is the latest addition to a network of studios, home setup...

11/11/2026

MLB Network Turns Up the Production for Fourth-Annual MLB Awards in Las Vegas

With a remodeled set, an expanded camera package, and a Steve Aoki performance, MLB Network's production team raises the bar again at The Chelsea...

11/11/2026

Spitfire Audio & Eric Whitacre launch Eternity

Third collaboration with Grammy-winning composer & conductor Spitfire Audio have announced the release of Eternity, the third sample library to be created a...

11/11/2026

Modbap release Wax Theory

Eurorack experts launch vinyl-inspired plug-in When praised Eurorackers Modbap revealed their first software effect recently, they stated it was the first r...

11/11/2026

Nielsen Announces Pricing of $1.4 Billion Offering of Senior Secured Notes by its Affiliate

New York, NY - November 10, 2026 - Neptune BidCo US Inc. (the Issuer or the C...

11/11/2026

Pliant Technologies Ships CrewCom Flex

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

11/11/2026

Blue Lucy Integrates With Comcast Technology Solutions

Share {alert(Link copied)}).catch(err => {console.error(Failed to copy: , err)}) data-platform=copy_link data-action= class=font-ui-heading py-2 text-sm tex...

11/11/2026

Hitomi Broadcast appoints Hibino Technos Inc. as value-ad...

New partnership strengthens local access to Hitomi s precision timing solutions, with MatchBox, MatchBox Glass and Spectra on show at Inter BEE 2026 Hitomi Br...

11/11/2026

Frequency Ads and OpenGlass Deploy Stream-Native In-Scene...

Frequency, the engine behind many of the worlds leading streaming television channels, and OpenGlass, the first SSP built for advanced CTV advertising, today an...