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 ...

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...

04/07/2026

Detective Conan: Fallen Angel of the Highway Opens in Dolby Cinemas Across Japan, Presented in Dolby Atmos and Dolby ...

April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...

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...

04/05/2026

just:play pro 2026 and just:live pro 2026 are available to download!

just:play pro 2026 and just:live pro 2026 are available to download! More Details:At NAB 2026, ToolsOnAir showcased just:play pro 2026 and just:live pro 2026, ...

04/05/2026

just:in mac pro 2026 - The Next Level of Professional Recording on macOS

just:in mac pro 2026 - The Next Level of Professional Recording on macOS More Details:The headline innovation in just:in mac pro 2026 is the new Auto format si...

04/05/2026

SVG Sit-Down: NEP Americas Mike Werteen on How Great Tech, Better People Drive Success

Hardware is still an emphasis - Supershooter 11 is new, and REMI-based 65 is in ...

04/05/2026

Beyond 90 Minutes: How K League's Soccer Blueprint for Growth Has Lessons for Everyone

Head of International Business Development Min Joo Kim explores the league's...

04/05/2026

Audio-Technica ATND1061 and ATUC Discussion Systems Certified for Crestron Automate VX

Audio-Technica has announced that its ATND1061 ceiling array microphone and ATUC...

04/05/2026

Triple B Media Launches Bowling TV, a 24/7 FAST Channel Dedicated to Bowling

Triple B Media has launched Bowling TV, a free ad-supported television (FAST) channel dedicated to bowling. The channel is available on Prime Video, LG Channels...

04/05/2026

PlayMetrics Acquires SportsEngine from Versant

PlayMetrics, a provider of operations management software for youth sports organizations, has announced the completion of its acquisition of substantially all t...

04/05/2026

IHSE GmbH Appoints Dr. Thomas Niessen as CEO

IHSE GmbH has announced that Dr. Thomas Niessen has joined as CEO and Managing Director, effective May 1, 2026. He joins Frank Breitenfelder, who has served as ...

04/05/2026

PMY Group Deploys Optic Crowd Intelligence Platform at Australian Formula 1 Grand Prix

PMY Group deployed its AI-powered crowd intelligence platform, Optic, at the For...

04/05/2026

Behind The Mic: Stephen A. Smith and Skip Bayless to Reunite for First Take Episode; Donna Brothers Worked Final Kentucky Derby

Behind The Mic provides a roundup of recent news regarding on-air talent, includ...

04/05/2026

Spotify Brings Fashion and Podcasting Together With Mina Le and Mia Calabrese

Last week, guests gathered in New York City for On Air, In Style: An Evening with Spotify-a night of conversation, culture, and connection celebrating the inter...

04/05/2026

Avid introduce Pro Tools 2026.4

New music & post-production features added Avid's latest DAW update delivers an array of helpful features aimed at both music and post-production users,...

04/05/2026

SAG-AFTRA, Studios Reach Tentative Agreement

Share Copy link Facebook X Linkedin Bluesky Email...

04/05/2026

Study: Paramount-WBD Deal Signals New Era of Streaming Scale

Share Copy link Facebook X Linkedin Bluesky Email...

04/05/2026

Student Spotlight: Joshua Griffin

Student Spotlight: Joshua Griffin The New Orleans native, who was named the 2026 student commencement speaker for Boston Conservatory at Berklee, talks about ...

04/05/2026

It's Andrew! stomps onto screens this June

It's Andrew! stomps onto screens this June 4 May 2026 The ABC and Screen Australia are delighted to announce that brand new preschool series, It's Andr...

03/05/2026

Melbourne Instruments' Nina gains Braids engine

Polysynth now features Mutable Instruments' macro oscillators Melbourne Instruments have just released a free firmware update that brings the engine beh...

03/05/2026

Introducing the new Mistika Workflows Suite: transformative and cost-effective for every user

Introducing the new Mistika Workflows Suite: transformative and cost-effective f...

03/05/2026

Introducing the new Mistake Workflows Suite: transformative and cost-effective for every user

Introducing the new Mistake Workflows Suite: transformative and cost-effective f...

03/05/2026

Filming begins on the third and final season of Breathless

Back to All News Filming begins on the third and final season of Breathless Entertainment 03 May 2026 GlobalSpain Link copied to clipboard Discover the vi...

02/05/2026

Release Rundown: What to Watch in May, From Saccharine to Tuner

(L-R) Dustin Hoffman and Leo Woodall appear in Tuner by Daniel Roher, an official selection of the 2026 Sundance Film Festival. (Photo courtesy of Sundance In...

02/05/2026

Warm Audio launch the Reamper

Versatile re-amping tool announced Warm Audio are best known for their recreations of sought-after vintage studio gear, but their latest release brings a ne...

02/05/2026

FCC Releases Tentative Agenda for May Open Meeting

Share Copy link Facebook X Linkedin Bluesky Email...

02/05/2026

Sinclair Remains Bullish on Station M&A

Share Copy link Facebook X Linkedin Bluesky Email...

02/05/2026

NABLF Announces 2026 Broadcast Leadership Training Award Winners

Share Copy link Facebook X Linkedin Bluesky Email...

02/05/2026

Gravity Media Taps Custom Consoles for Work on Production Center

Share Copy link Facebook X Linkedin Bluesky Email...

02/05/2026

May 01, 2026

Scripps Research immunologist Dennis Burton elected to American Academy of Arts and Sciences A leader in broadly neutralizing antibodies, Burton has helped driv...

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

Ratings Roundup: NBA Playoffs Return to NBC Sports up 38%; NFL Draft Down 12% Overall From 2025

Ratings Roundup is a rundown of recent rating news and is derived from press rel...

01/05/2026

BKB Bare Knuckle Boxing Appoints Will Wright as Chief Operating Officer to Drive Global Growth and Operational Excellence

BKB Bare Knuckle Boxing ( BKB ), today announced the appointment of Will Wright ...

01/05/2026

NAB Rewind: Lawo's Andreas Hilmer on the Power of the Edge One AV Stagebox

Lawo has been at the center of the industry's transition to IP and other next-generation technologies. At NAB 2026, its story was the Edge One AV stagebox, ...

01/05/2026

Kentucky Derby 152 to Air Across 19 Networks in 170-Plus Territories

HBA Media, acting on behalf of NBC Sports and Churchill Downs Incorporated, has announced broadcast and streaming distribution for Kentucky Derby 152, taking pl...

01/05/2026

Give Me the Backstory: Get to Know Barbara Kopple, the Director of American Dream

By Bailey Pennick One of the most exciting things about the Sundance Film Festi...

01/05/2026

Find Out Which The Devil Wears Prada 2' Character You Are With Our New Playlist

Florals for spring? Groundbreaking. But a playlist that tells you which The Devi...

01/05/2026

Olivia Rodrigo Takes Over FC Barcelona Jersey for El Clsico Match at Spotify Camp Nou

One of the world's biggest popstars is headed to El Cl sico. Later this mont...

01/05/2026

Heritage Audio announce the Baby RAM Black Edition

Limited-edition model celebrates 15th anniversary Heritage Audio's range of monitor controllers has just gained a new member, the Baby RAM Black Edition...

01/05/2026

Universal Audio release UAD Enigmatic '82 Overdrive Special Amp

Dumble recreation now available as UAD plug-in Along with their renowned processing plug-ins, Universal Audio have been steadily introducing emulations of c...

01/05/2026

UPDATED: Republican AGs Join Nexstar-Tegna Antitrust Suit

Share Copy link Facebook X Linkedin Bluesky Email...

01/05/2026

Broadcaster Draper Media Names Bill Vernon President

Share Copy link Facebook X Linkedin Bluesky Email...

01/05/2026

Analysts: 'Hollywood's Vertical Video Strategy Is Dead Wrong'

Share Copy link Facebook X Linkedin Bluesky Email...

01/05/2026

Lightware UK celebrates new London showroom with launch e...

To celebrate the opening of its new showroom and office, Lightware UK hosted a dedicated launch event at the new London location. The event welcomed partners, c...

01/05/2026

Calrec Puts Broadcaster Choice Centre Stage at MPTS 2026

Choice without compromise The broadcast industrys transformation is accelerating, and traditional broadcasters are having to fundamentally reinvent how they o...

01/05/2026

Beam Dynamics Showcases its Asset Intelligence Platform a...

Beam Dynamics will return to MPTS 2026 with its asset intelligence platform, helping systems integrators, live production teams, media facilities and profession...

01/05/2026

Synamedia and FX Digital collaborate to bring GO Shorts a...

Best-in-class UX design and rapid, scalable delivery for next-generation viewing experiences Leading video software provider, Synamedia, today announced a coll...

01/05/2026

Compact new cforce MAX lens motor brings unrivaled speed and responsiveness to the Hi-5 ecosystem

Compact new cforce MAX lens motor brings unrivaled speed and responsiveness to t...

01/05/2026

Panavision welcomes Fritz Heinzle as Vice President of Sales

Panavision welcomes Fritz Heinzle as Vice President of Sales Brie Clayton May 1, 2026 0 Comments Heinzle will support Panavision's global growth s...