
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
11/12/2025
Dalet, a leading provider of cloud-native, end-to-end media workflow solutions, ...
10/12/2025
Sound-Alike Commercials Are Part of Sports' Soundtrack Johnny Cash for Coca-Cola is the latest in a long litany of sonic approximationsBy Dan Daley, Audio ...
10/12/2025
Immersive Sound Is Logical Next Step for Sports VenuesSound-systems suppliers are sanguine, but the market has its challengesBy Dan Daley, Audio Editor
Wednes...
10/12/2025
The Romans Built Arenas for Immersive Sound 2,000 Years AgoThe historic Arena of Nimes in France is still in use todayBy Dan Daley, Audio Editor
Wednesday, De...
10/12/2025
SVG Summit 2025 Preview: Audio Workshop Hits on Immersive, Virtualized, and Next...
10/12/2025
SVG Summit 2025 Technology Exhibits Preview: Audio SpotlightBy SVG Staff
Wednesday, December 10, 2025 - 8:21 am
Print This Story | Subscribe
Story Highlig...
10/12/2025
SVG Europe Audio: Listening to the sounds of powder and ice at Milano Cortina wi...
10/12/2025
Advancements in audio technology: Capturing the atmosphere of live sports By David Davies
Tuesday, November 25, 2025 - 09:27
Print This Story
Although wor...
10/12/2025
Everything smelled of popcorn: The art of bringing the complex sound of esports ...
10/12/2025
Top L-R: Ha-Chan, Shake Your Booty!, Hanging by a Wire, Broken English, Buddy
C...
10/12/2025
For the first time, Spotify is giving users the power to steer the algorithm. Gustav S derstr m, Spotify's Co-President, CPO, and CTO, shares the vision beh...
10/12/2025
L3Harris' new contract for Guided Multiple Launch Rocket System Insensitive ...
10/12/2025
L3Harris Meadowlands system has been designed with an open architecture software system that allows for more flexible and efficient software updates. This capab...
10/12/2025
During this interval, streaming comprised the majority of ad supported TV (46.4%...
10/12/2025
NEWPORT BEACH, Calif. Bitcentral, a provider of production, asset management, playout and streaming workflow solutions, has named technology veteran Rick Arnold...
10/12/2025
TV Tech is delighted to reveal the winners of the 2025 Media & Entertainment: Best in Market Awards....
10/12/2025
BOTHELL, Wash. The Alliance for IP Media Solutions (AIMS), the Video Services Forum (VSF), the Advanced Media Workflow Association (AMWA) and the European Broad...
10/12/2025
In a notable example of how pay TV operators are integrating streaming services into their lineup and using those services to retain or attract subscribers, Dir...
10/12/2025
Today, Chaos builds instant feedback into the viewport, connecting Maya and Houdini to Chaos Vantage's real-time path tracer. Artists can now assess 3D asse...
10/12/2025
Smeup, a key partner for companies engaged in digital transformation, today announced the expansion of its adoption of Cubbit, the first geo-distributed cloud s...
10/12/2025
Mediagenix, a global leader in smart content solutions to profitably connect the right content to the right audience, today announced two significant milestones...
10/12/2025
BEAVERTON, Ore. HDR10+ Technologies, LLC has announced that they will soon begin the licensing and certification of devices, content, and services that support ...
10/12/2025
SMPTE has joined forces with the European Broadcasting Union (EBU) and Entertainment Technology Center (ETC) to publish an updated report on AI and its impact o...
10/12/2025
Clear-Com is pleased to announce the appointment of Kris Koch as Director of Sales - North & South America. In this expanded leadership role, Kris will oversee...
10/12/2025
Mavis today announced the latest version of Mavis Camera (v7.4), a major update to its professional iOS camera app, headlined by the launch of Film Kit - an opt...
10/12/2025
Creamsource, renowned for its Vortex series of cinematic lighting, is laying the groundwork for its next phase of growth with the addition of Markus Zeiler as G...
10/12/2025
Digital Alert Systems, a global leader in emergency communications solutions for media providers, today announced that the DAS3-DC-PS, a new DC power supply opt...
10/12/2025
Riedel Communications today announced it has formed a strategic partnership with Racing Electronics, a premier provider of motorsport communication equipment in...
10/12/2025
#GALSNGEAR is launching two signature leadership retreats in early 2026, designed to equip women in media, entertainment, and technology with the tools to lead...
10/12/2025
Providing worldwide customers with total confidence through transparent, all-inclusive pricing
CVP, one of Europe's leading suppliers of professional video...
10/12/2025
With the Federal Communications Commission working on new rules for the deployment of NextGen TV, next year promises to be an important one for both the future ...
10/12/2025
DENVER Tom Rutledge, director emeritus and former president and CEO of Charter Communications, will be honored with the 2026 Bresnan Ethics in Business Award by...
10/12/2025
NEW YORK Novocap's Cadent has acquired VuePlanner, a YouTube video ad planning, optimization, and measurement company in a deal that will help Cadent expand...
10/12/2025
In preparation for the madness of March, here are some important reminders for scheduling back-to-back Special Playlists.
The first Special Playlist MUST end b...
10/12/2025
10 Dec 2025
VEON's Rising Capital Markets Profile Strengthened by Inclusion...
10/12/2025
10 Dec 2025
VEON Recognized for JazzCash, Kyivstar and Jazz at the World Commun...
10/12/2025
December 10th, 2025
TRIBECA FILMS TO RELEASE THE INDEPENDENT DOCUMENTARY FILM...
10/12/2025
Wednesday 10 December 2025
Sky extends partnership with the Ladies European Tour for a landmark 30th year
Sky and the Ladies European Tour (LET) have announce...
10/12/2025
Wednesday 10 December 2025
Walk-on if you love the darts: James Maddison, Luke ...
10/12/2025
Rohde & Schwarz presents world's first RF power sensor with 0.80 mm RF conne...
10/12/2025
Back to All News
2026 Starts With a Swoon: Kim Seon-ho and Go Youn-jung Lead C...
10/12/2025
Back to All News
Berlin and the Lady with an Ermine Arrives to Netflix on May 15
Entertainment
10 December 2025
GlobalSpain
Link copied to clipboard
THE N...
10/12/2025
It's out of the frying pan and into the sequins for comedian and actor Micha...
10/12/2025
Born That Way airs Thursday 18 December on RT One and RT Player
Born That ...
09/12/2025
2025 Sports Broadcasting Hall of Fame: Pam Oliver, Sideline Icon Who Redefined t...
09/12/2025
SVG Summit 2025 Technology Exhibits Preview, Part 2By Jason Dachman, Editorial Director, U.S.
Tuesday, December 9, 2025 - 7:17 am
Print This Story | Subscr...
09/12/2025
SVG Summit 2025 Preview: Cloud Production Workshop Spotlights Live and Non-Live ...
09/12/2025
Next-generation content protection: Multi-technology security is integral to com...
09/12/2025
CBS Sports Provides One-of-a-Kind Production' for UEFA Champions League Cro...
09/12/2025
Spanish Professional Basketball League Relies on NETGEAR AV, MAM Tech for Seamle...