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 ...

07/10/2026

Dalet Flex LTS Delivers Smarter Media Operations from Ingest to Distribution

Dalet, a leading technology and service provider for media-rich organizations, today announced the latest Long-Term Supported (LTS) release of Dalet Flex. Build...

06/09/2026

Dolby and MagentaTV Bring Fans Closer to the FIFA World Cup 2026 in Germany with Dolby Vision and Dolby Atmos

June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...

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...

14/07/2026

UPDATED: Scripps, DirecTV End Blackout, Ink New Retrans Deal

Share Copy link Facebook X Linkedin Bluesky Email...

14/07/2026

12 States Sue to Block $110 Billion Warner Bros./Paramount Merger

Share Copy link Facebook X Linkedin Bluesky Email...

14/07/2026

Heidi Raphael to Head N.Y. State Broadcasters Association

Share Copy link Facebook X Linkedin Bluesky Email...

14/07/2026

CBS Atlanta Expands Live Local News Programming

Share Copy link Facebook X Linkedin Bluesky Email...

13/07/2026

BravesVision GM Jeff Cravens on Launching MLB's Newest Team-Owned Network in 35 Days

The Braves opted to keep production in-house rather than hand it off to MLB...

13/07/2026

Behind The Mic: Adam Schefter Signs Multi-Year Extension with ESPN

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...

13/07/2026

Eurovision Sport and European Athletics Bring Live Athletics to More Fans with Multilingual AI Commentary Initiative

Eurovision Sport is making live athletics more accessible to fans than ever befo...

13/07/2026

Milwaukee Bucks Return to Full-Season Over-the-Air Television for First Time in 31 Years

The Milwaukee Bucks will return to full-season over-the-air television for the 2...

13/07/2026

SMPTE Expands Education Offerings with Connected Learning Path for IP Media Workflows

SMPTE has announced an expanded education pathway for media technology professio...

13/07/2026

Vizrt Graphics Power Netflix MVP MMA Event at Intuit Dome

Vizrt has announced that its graphics technology was used by broadcast design agency Girraphic for Netflix's debut MVP MMA event, broadcast live from the In...

13/07/2026

ARRI To Sell Global Rental Business to H2 Equity Partners in Management Buyout

ARRI has announced an agreement to sell its global rental activities in Europe, the United Kingdom, and North America to H2 Equity Partners through a management...

13/07/2026

DAZN and Premier Boxing Champions Announce Global Broadcasting Partnership

DAZN has announced a partnership with Premier Boxing Champions (PBC) to bring PBC fight nights to DAZN subscribers globally. The partnership begins Saturday, Ju...

13/07/2026

TikTok and WSC Sports Partner To Connect Sports Rightsholders With Content Creators

TikTok and WSC Sports have announced a strategic partnership that gives sports r...

13/07/2026

Ross Video Powers MLB All-Star In-Venue Production for Seventh Consecutive Year

Two new Ross products -Brushback: Full Count and CapGo - are debuting at Citizens Bank Park All-Star festivities...

13/07/2026

MSG Networks Jackie Lyons on Knicks Title Run Coverage, XR Studio Launch, and RSN Production Strategy

MSG Networks' was given exclusive access during the Knicks' unforgettabl...

13/07/2026

Sundance Institute Announces 2026 Producers Labs Fellows

LOS ANGELES, July 13, 2026 - Sundance Institute today announced the 10 producers selected to participate in its annual Producers Labs taking place July 13-18 fo...

13/07/2026

Techivation release M-Compressor 2

Adds new intelligent Mix Assistant feature With their product range now featuring numerous processors across two distinct line-ups, the M-Series and T-Serie...

13/07/2026

Avalanche Tones release Chainsaw Suite

Plug-ins for heavy music Avalanche Tones is the brainchild of Ava Toton, a 17-year-old musician and developer who says her goal is to make the lives of gui...

13/07/2026

Gamechanger Audio launch the Plus Pedal II

Popular sustain effect overhauled Latvia-based innovators Gamechanger Audio have just launched a new and improved version of their popular sustainer unit. B...

13/07/2026

Millions tuned in for quarter-finals of the FIFA World Cup 2026 on SBS

Millions tuned in for quarter-finals of the FIFA World Cup 2026 on SBS 13 July, 2026 Media releases Norway v England attracted a Total TV reach of 3.7 mil...

13/07/2026

SMPTE Expands Free IP for Media Training Resources

Share Copy link Facebook X Linkedin Bluesky Email...

13/07/2026

Composer Andy Dollerson Transforms Independent Film Sound...

Composer and Producer Andy Dollerson has built a career by blending his electroacoustic training with hands on production work for independent artists and filmm...

13/07/2026

SipRadius-maintained libRIST enables full RIST support in...

The next release of the widely used video player VLC 3.0.24 will incorporate full support for RIST, including main profile and some support for advanced profile...

13/07/2026

ARRI Divests Rental Business

Share Copy link Facebook X Linkedin Bluesky Email...

13/07/2026

Sound Reinforcement for a Live TV Casting Show_An Invisib...

Providing sound reinforcement for a live televised casting show ranks among the most demanding tasks in event technology: the house sound and the broadcast feed...

13/07/2026

Savannah Bananas chooses Calrec to expand broadcast ambit...

Committed to its fans first guiding principle, the genre-defying Savannah Bananas baseball team has placed Calrec at the heart of its growing broadcast story. A...

13/07/2026

Intinor Showcases SMPTE ST 2110 Advancements and DVB comp...

At IBC2026, Intinor will demonstrate its latest developments and present a practical path for broadcasters transitioning to IP workflows. The showcase focuses o...

13/07/2026

Scripps, DirecTV End Blackout, Ink New Retrans Deal

Share Copy link Facebook X Linkedin Bluesky Email...

13/07/2026

20 Years On the Pitch Together

Celebrating Two Decades of ICG and League Football Education This year marks 20 years of working with League Football Education (LFE) the charity responsible ...

13/07/2026

Silver for Arvato Systems at the 2026 Service Provider Award

Silver for Arvato Systems at the 2026 Service Provider Award Award in the AI as a Service Provider category recognizes AI expertise and innovative strength ...

13/07/2026

RT News Appoints Joe Mag Raollaigh as new Managing Editor of Nuacht

RT News is pleased to announce the appointment of Joe Mag Raollaigh as the new Managing Editor of Nuacht, the Irish Language News and Current Affairs service a...

12/07/2026

Korg NTS-4: DIY analogue performance mixer

Offers six-channels and built-in effects Korg's latest release introduces a new analogue mixer that's been designed to act as a hub for live electro...

12/07/2026

COW Jobs: Video Production Specialist, Indie Game - Remote

COW Jobs: Video Production Specialist, Indie Game - Remote Brie Clayton July 12, 2026 0 Comments Video Production Specialist (Indie Game) May 29, 20...

11/07/2026

Night Nurse Is for the Sickos

(L-R) Bruce McKenzie, Mimi Rogers, Cemre Paksoy, Georgia Bernstein, El onore Hendricks, and Colleen Rose Trundy attend the Night Nurse premiere during the 202...

11/07/2026

Handcrafted Mallets from Handcrafted Audio

Promises a vividness and depth rarely found in software Switzerland-based Handcrafted Audio's latest creation is an interesting hybrid instrument that...

11/07/2026

NAB Launches Redesigned Spot Center

Share Copy link Facebook X Linkedin Bluesky Email...

11/07/2026

Fujifilm Introduces Cinema Power Zoom for GFX System

Share Copy link Facebook X Linkedin Bluesky Email...

11/07/2026

NEP Inks New Agreement with Wimbledon

Share Copy link Facebook X Linkedin Bluesky Email...

11/07/2026

Rincon Secures Major Milwaukee Bucks Broadcast Rights Deal

Share Copy link Facebook X Linkedin Bluesky Email...

11/07/2026

Boston Conservatory at Berklee Awards Grants to Five Alumni, Supporting Work in Their Local Communities

Boston Conservatory at Berklee Awards Grants to Five Alumni, Supporting Work in ...

11/07/2026

Berklee Alumni and Faculty Recognized with 2026 Emmy Nominations

Berklee Alumni and Faculty Recognized with 2026 Emmy Nominations The 27 nominees include Trey Parker (South Park) and seven-time Emmy winner Pablo Mungu a of ...

10/07/2026

SVG GameDay, Ep. 23: Nashville Predators Teri Johnson - Throwing a Bash on Broadway

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

10/07/2026

Fujifilm Announces FUJINON GF19-35mmT3.5 PZ OIS WR Cinema Power Zoom Lens

FUJIFILM North America Corporation has announced the FUJINON GF19-35mmT3.5 PZ OIS WR, a cinema power zoom lens for the GFX System with native G Mount. The lens ...

10/07/2026

Dalet Releases Long-Term Supported Update to Dalet Flex

Dalet has announced a new Long-Term Supported (LTS) release of Dalet Flex, expanding AI capabilities, workflow automation, and integration with Dalia, Dalet'...

10/07/2026

Blackmagic Design Releases Fairlight Live Audio Mixer Software

Blackmagic Design has released Fairlight Live, a free software-based broadcast audio mixer for Mac and Windows, available for download now. Simultaneously, the ...

10/07/2026

FloSports and USA South Athletic Conference Announce Exclusive Media Rights Partnership

FloSports and the USA South Athletic Conference have announced an exclusive medi...