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...

28/08/2026

Buddy Turns Childhood Comfort into Midnight Terror

(L-R) Topher Grace, Cristin Milioti, Delaney Quinn, Casper Kelly, and Keegan-Michael Key pose with the character Buddy at the Buddy Premiere during the 2026 S...

28/08/2026

IK Multimedia announce Sinphonica Maestosa Strings

The Italian orchestra, reimagined IK Multimedia have announced the upcoming launch of Sinphonica, a new family of Italian orchestral instruments designed f...

28/08/2026

Voxis from CEDAR Audio

Voice-isolation plug-in boasts sub-10ms latency Launched in 2025, CEDAR Audio's Icons range was created with the aim of bringing the company's renow...

28/08/2026

Charter Takes Scripps to Court Over Carriage of Las Vegas' KMCC

Share Copy link Facebook X Linkedin Bluesky Email...

28/08/2026

Backlight Expands Creative Operations Platform with AI-p...

Global media technology company Backlight will showcase its latest innovations across Iconik and Wildmoka live video creation and distribution at IBC2026 (booth...

28/08/2026

Emergent Brings Its AI-Enhanced Content Production Platfo...

Emergent, a developer of browser-based, AI-enhanced content production tools, will present its complete AI-enhanced content production platform at IBC2026, exhi...

28/08/2026

Joseph Bell Announces VFX & Animation World Atlas 2026

Joseph Bell Announces VFX & Animation World Atlas 2026 Joseph Bell August 28, 2026 0 Comments Joseph Bell's Visual Effects & Animation World Atlas...

28/08/2026

Paris-Troyes en Champagne Goes Live on France.tv with AVEO

Paris-Troyes en Champagne Goes Live on France.tv with AVEO Brie Clayton August 28, 2026 0 Comments Regional audiovisual company builds broadcastgrade ...

28/08/2026

DHD to Introduce its Third-Generation Audio Mixing Console at IBC 2026

DHD to Introduce its Third-Generation Audio Mixing Console at IBC 2026 Brie Clayton August 28, 2026 0 Comments DHD.audio has chosen IBC 2026 as the la...

28/08/2026

Grass Valley AMPP Provides an All-Encompassing Approach t...

Encompass Digital Media and Grass Valley are expanding their collaboration with the launch of Altitude Playout Plus, a software-defined channel origination plat...

28/08/2026

Yospace releases new Ad Presentation solution

Yospace, the trusted leader in Dynamic Ad Insertion (DAI), has announced the release of its Ad Presentation solution, which enables broadcasters to apply non-li...

28/08/2026

TSL Showcases Reduced Complexity for Control and Monitori...

TSL Showcases Reduced Complexity for Control & Monitoring Across IP Workflows at IBC2026 New TSL Hummingbird capabilities including Dante control routing, toge...

28/08/2026

Lutz Rathmann to Become CEO of Riedel Communications

Share Copy link Facebook X Linkedin Bluesky Email...

28/08/2026

Spectrum Offers Lower-Income Internet Customers Free Amazon Prime

Share Copy link Facebook X Linkedin Bluesky Email...

28/08/2026

FCC Exempts Public Access Channels from Closed Captioning

Share Copy link Facebook X Linkedin Bluesky Email...

28/08/2026

Elon Musk's X Launches NFL Gametime on X

Share Copy link Facebook X Linkedin Bluesky Email...

28/08/2026

GlobalM and Lamhas Partner to Expand Managed IP Broadcast...

GlobalM and Lamhas Satellite Services today announced a new agreement that will see GlobalMs GMX technology deployed as part of Lamhas expanding managed IP broa...

28/08/2026

Boland Communications Introduces SMPTE ST 2110 Option for...

Integrated 25GbE Connectivity Delivers UHD Video Directly to Up to Two Monitors, Eliminates External Gateways, and Supports SMPTE ST 2022-7 Network-Path Protect...

28/08/2026

JT-DMF Invites IBC2026 Attendees to Help Shape the Future...

Interactive Ask Me Anything sessions will connect broadcasters and technology providers with the experts developing a practical, interoperable roadmap for sof...

28/08/2026

TAG Video Systems Cuts Live Production Latency Below Two...

At IBC2026, TAG will show sub-2-frame latency and 800 Gbps of aggregate scale for uncompressed ST 2110 monitoring in software, live MXL interoperability with pa...

28/08/2026

SportsBox BHVs Ultra-Compact 4K Remote Switcher Moves fro...

SportsBox, BHV's Ultra-Compact 4K Remote Switcher, Moves from Development to Production at IBC 2026 SportsBox brings flexibility without compromise to high...

28/08/2026

Riedel Evolves Leadership and Global Go-to-Market Organiz...

Lutz Rathmann named CEO of Riedel Communications Anthony Zuyderhoff to lead unified customer-facing organization as CCO Riedel Communications is strengthenin...

28/08/2026

Scripps Research establishes endowed fund honoring institute president and CEO Pete Schultz

LA JOLLA, CA-Scripps Research has established the Pete Schultz Fund for Innovati...

28/08/2026

Chemists develop simpler method to make molecular building block for drug development

LA JOLLA, CA-Chemical structures called cyclopropanols are among the most useful...

28/08/2026

Sky Secures Approval for Major Livingston Campus Investment, Reinforcing Long-Term Commitment to Scotland

Friday 28 August 2026 Sky Secures Approval for Major Livingston Campus Investme...

27/08/2026

ESPN Adds College Football Saturdays to Disney+ This Fall

ESPN and Disney are launching College Football Saturdays, adding two college football games per week to Disney for U.S. subscribers as part of their existing ...

27/08/2026

IBC 2026: Zixi to Showcase Live Video Platform and Broadcaster v19

Zixi will exhibit at IBC2026 (Hall 5, Stand 5.A76, RAI Amsterdam, September 11-14), demonstrating the Zixi Platform and the latest release of Zixi Broadcaster, ...

27/08/2026

NDI Surpasses 1.2 Million Hardware Nodes as IBC2026 Showcase Expands

NDI has announced that its ecosystem has surpassed 1.2 million NDI-enabled hardware nodes worldwide, spanning products from more than 200 hardware brands across...

27/08/2026

Clear-Com FreeSpeak Cell Trialed During Rio Carnival Before Commercial Launch

Clear-Com conducted a pre-launch field trial of FreeSpeak Cell during Carnival 2026 in Rio de Janeiro, in partnership with Brazilian systems integrator Savana C...

27/08/2026

IBC 2026: BVH SportsBox Remote Mixer Becomes Reality

BHV returns to IBC 2026 with an important milestone for its own SportsBox: the broadcast industry's smallest remote vision mixer and format processor has mo...

27/08/2026

TOGETHXR and Snapchat Announce Second Snap the Gap Athlete Cohort

TOGETHXR and Snapchat have announced the second cohort of their Snap the Gap content creator program, welcoming nine athletes as Snap Stars. The program provide...

27/08/2026

CNBC UK Selects MediaKind Beam for Live News Infrastructure

MediaKind has announced that CNBC UK has selected Beam to modernize its contribution and distribution infrastructure for live broadcast operations. The deployme...

27/08/2026

Monitor Engineer Chris Dwight Deploys Sennheiser Spectera on Puscifer and A Perfect Circle Tours

Monitor engineer Chris Dwight has deployed Sennheiser's Spectera wideband bi...

27/08/2026

IBC 2026: Telestream Expands UP Platform

Telestream has announced an expansion of its UP cloud-native platform, adding capabilities for orchestrating Telestream services, third-party technologies, and ...

27/08/2026

Swerve TV Signs Multi-Year Partnership with GLORY Kickboxing

Swerve TV has signed a multi-year partnership with GLORY Kickboxing, bringing live GLORY events and library programming to Swerve Combat, Swerve TV's free a...

27/08/2026

AFP and Dalet Integrate AFP Content Into Dalet Flex Newsroom Workflow

Dalet has announced a new integrated content experience with Agence France-Presse (AFP) in Dalet Flex, designed to bring AFP's editorial metadata into the p...

27/08/2026

IBC 2026: Grass Valley to Demonstrate Integrated Live Production Environment

Grass Valley will demonstrate an integrated live production environment at IBC2026 (Booth 9.A01, RAI Amsterdam, September 11-14), combining K-Frame, Maverik X, ...

27/08/2026

NWSL and Roku Expand Partnership with Sunday Night Streaming Package

The National Women's Soccer League and Roku have announced an expanded partnership, with the Roku Sports Channel becoming the exclusive streaming home of ei...

27/08/2026

Fubo Adds ACC Network Extra and SEC Network+ to Streaming Service

FuboTV has announced the launch of ACC Network Extra (ACCNX) and SEC Network (SECN ) on the Fubo streaming service at no additional cost to subscribers with En...

27/08/2026

Moment Branding: Using Sound to Create More Powerful Fan Experiences

Sports marketers have entered the experiential age. Today, sports teams, leagues, and venues are increasingly using immersive interactions and real world events...

27/08/2026

IBC 2026: MultiDyne to Debut MDoG-8800 12G Fiber Transport Module

MultiDyne will introduce the MDoG-8800 at IBC2026 (Stand 11.C12, RAI Amsterdam, September 11-14), extending its openGear portfolio with a high-density fiber tra...

27/08/2026

IBC 2026: JT-DMF To Host Ask Me Anything' Sessions

The Joint Task Force on the Dynamic Media Facility (JT-DMF), an initiative of AMWA and the EBU, will host a series of informal Ask Me Anything sessions during...

27/08/2026

Homestream Syncs Duke, Auburn and Georgia Tech Football, Basketball Radio Calls to Live TV Broadcasts

Homestream, a mobile app that automatically syncs a team's local radio broad...

27/08/2026

Spikes Under the Lights Brings Collegiate Volleyball to AT&T Stadium in a Made-for-TV Event Built for Scale

A packager for TNT Sports, Kwokman Productions is on hand for the unique event w...

27/08/2026

25 Seasons of New York Yankees on YES Network: The Day 1 Crew Looks Back on a Quarter Century in the Bronx - and Stamford

After more than 3,000 games, five members of YES Network's original staff re...

27/08/2026

Dreamtonics unveil Instrument X orchestral alternative

Physical modelling orchestral instrument announced Following their recent cryptic hints, Dreamtonics have officially revealed the latest addition to their s...

27/08/2026

Apple update the Mac mini & Mac Studio

M5 Ultra-equipped Studio most powerful Mac to date Apple have just announced a design refresh which they say makes the Mac mini fiercer and more versatil...