
Nokia Corporation Financial Report for Q2 and Half Year 2020
Nokia Corporation
Half year report
July 31, 2020 at 08:00 (CET 1)
Nokia Corporation Financial Report for Q2 and Half Year 2020
Continued improved execution drives strong margin and cash performance
Strong margin expansion, primarily driven by Mobile Access
Clear roadmap progress, particularly related to our 5G mid-band portfolio
Confidence in resilient customer base and strong liquidity position
11% decrease in net sales, largely driven by COVID-19 and China
Strong growth in Nokia Enterprise
Positive operating profit, on a reported basis, in both Q2 and half year 2020
Within previously provided Outlook ranges for full year 2020, adjusted the non-IFRS mid-points for EPS to EUR 0.25 and operating margin to 9.5%
Delivered strong free cash flow year-to-date and raised 2020 recurring free cash flow guidance to be clearly positive
This is a summary of the Nokia Corporation financial report for Q2 and half year 2020 published today. The complete financial report for Q2 and half year 2020 with tables is available at www.nokia.com/financials. Investors should not rely on summaries of our financial reports only, but should review the complete financial reports with tables.
RAJEEV SURI, PRESIDENT AND CEO, ON Q2 2020 RESULTS
Nokia delivered a strong improvement in Q2, with better-than-expected profitability, significant improvement in cash generation, clear indications of a return to strength in mobile radio, and a year-on-year increase in earnings-per-share, despite the challenges of COVID-19. These results show that our execution has improved as planned and that we are well positioned to end the year with a significantly stronger financial position. As a result, we are adjusting upward both the midpoint of our full-year 2020 non-IFRS EPS and operating margin guidance within our previously disclosed outlook ranges.
Profitability gains in the quarter were supported by a 4.5 percentage point year-on-year improvement in Networks gross margin, building on a 3.5 percentage point gain in the first quarter, and driving Nokia non-IFRS gross margin to 39.6%. Nokia Enterprise also grew year-on-year constant currency sales by 18% compared to one year ago and expanded margins.
Nokia-level revenue was down in the quarter, with the majority of that the result of COVID-19 as well as a sharp decline in China based on the prudent approach we have taken in that market. We also saw a reduction driven by our proactive steps to reduce the volume of low margin services business. We expect that the majority of sales missed in the quarter due to COVID-19 will shift to future periods.
At the start of the year, we said we would have a sharp focus on our Mobile Access business and improving cash generation. In both areas we continue to make good progress. Free cash flow in the quarter was positive 265 million, versus negative 1.0 billion one year ago, and Nokia ended Q2 with 1.6 billion of net cash, and 7.5 billion in total cash. Given our strong first-half improvement, we now expect free cash flow for full-year 2020 to be clearly positive compared to our earlier guidance of positive .
In Mobile Access, we saw healthy improvements in our radio portfolio, where roadmaps are strengthening, costs are coming down, and product performance is rising. We have a particularly powerful portfolio in mid-band mobile radio, with proven products deployed with 55 customers, and the first live C-Band network demonstrated in the U.S. during the quarter. Pleasingly, our 5G Powered by ReefShark shipments continue to increase and we believe we remain on track to reach 35% or better by year end. And, we now have 83 5G deals.
Our continued momentum was demonstrated by the progress we announced after the quarter ended. These included the availability of a software upgrade that allows millions of Nokia 4G/LTE radios deployed to more than 350 customers to be migrated seamlessly to 5G; and plans to accelerate leadership in Open RAN. Nokia is the only global supplier fully committed to O-RAN with commercial 5G Cloud-RAN networks. We also announced an expansion of our IP routing business into the data center market and highlighted that Apple was deploying our technology at its data centers.
This is my last quarterly announcement as CEO of Nokia and I want to close with a note of thanks: thanks to our shareholders, thanks to our customers, thanks to our many other stakeholders, and a particular thanks to the great employees of Nokia. You have constantly made me proud and I expect that you will continue to do so in the many years to come. Thank you all. It has been a pleasure and an honor.
NOKIA FINANCIAL RESULTS
EUR million (except for EPS in EUR) Q220 Q219 YoY change Constant currency YoY change Q1-Q220 Q1-Q219 YoY change Constant currency YoY change
Net sales 5 092 5 694 (11)% (11)% 10 005 10 726 (7)% (7)%
Networks 3 955 4 393 (10)% (10)% 7 713 8 336 (7)% (8)%
Nokia Software 597 678 (12)% (12)% 1 210 1 221 (1)% (1)%
Nokia Technologies 341 383 (11)% (11)% 689 753 (8)% (9)%
Group Common and Other 210 263 (20)% (21)% 415 484 (14)% (15)%
Non-IFRS exclusions (1) (2) (1) (27)
Eliminations (11) (21) (20) (41)
Gross profit 2 006 2 065 (3)% 3 784 3 646 4%
Operating profit/(loss) 170 (57) 94 (581)
Networks 249 119 109% 169 (135)
Nokia Software 88 137 (36)% 159 130 22%
Nokia Technologies 282 324 (13)% 572 626 (9)%
Group Common and Other (197) (129) (361) (230)
Non-IFRS exclusions (253) (508) (445) (972)
Operating margin % 3.3% (1.0)% 430bps 0.9% (5.4)% 630bps
Net sales (non-IFRS) 5 093 5 696 (11)% (11)% 10 007 10 753 (7)% (7)
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
07/10/2026
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
June 9 2026, 23:00 (PDT) Dolby and MagentaTV Bring Fans Closer to the FIFA Worl...
03/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
03/09/2026
The EZDRM approach to Revenue Security on streaming video can be visualized as a multi-dimensional set of solutions. A growing dimension of that approach is the...
03/09/2026
From field capture to management, control and production, Kiloview will demonstrate one connected Hybrid AV-over-IP workflow including a complete 4RU producti...
03/09/2026
Mediagenix, a global leader in smart content solutions to profitably connect the right content to the right audience, today announced Mediagenix Curation, a new...
03/09/2026
LucidLink, the Emmy-winning cloud-native file streaming platform for instant, secure access to large files, today announced the next step in its vision to make ...
03/09/2026
Fraudulent communications purportedly from Screen Australia 3 September 2026
Screen Australia is aware of scam attempts involving fake emails and promotional m...
03/09/2026
AJA Introduces FS8, Next-Gen 12G-SDI/SMPTE ST 2110 Media Processor
Brie Clayton September 2, 2026
0 Comments
AJA Video Systems unveiled FS8, a video a...
03/09/2026
Shooting Deadheading with Blackmagic URSA Cine 12K LF
Brie Clayton September 2, 2026
0 Comments
Bringing a small story to the big screen with dark com...
03/09/2026
OOONA Launches OOONA Go: Professional Localization Management for Small Companie...
03/09/2026
DURHAM, N.C. - East of Texas Durham has officially opened its doors at American ...
02/09/2026
Professional and collegiate clubs, leading vendors discuss current trends in stadium production
On. Aug. 12, the 2026 SVG Venues & Teams Summit explored the ev...
02/09/2026
SoFi Stadium, YouTube Theater, and Hollywood Park have completed an infrastructure upgrade expanding game presentation and broadcast production capabilities acr...
02/09/2026
Comcast Technology Solutions (CTS) has announced a suite of AI-powered workflow applications for broadcasters, content owners, and operators, built on its Video...
02/09/2026
The North American Broadcasters Association (NABA) and the Association of Professional Wireless Production Technologies (APWPT) have announced a partnership to ...
02/09/2026
Carolina Hurricanes, Anaheim Ducks, Columbus Blue Jackets, Dallas Stars, Minneso...
02/09/2026
New LED provides enhanced quality control, quicker show prep, detailed productio...
02/09/2026
Combines the Phat Drive with high-voltage valve circuit
The latest pedal from Keeley Electronics combines their popular Phat Mode drive pedal with an all-ne...
02/09/2026
Free version of virtual mixing room plug-in introduced
Lewitt's Space Replicator plug-in provides users with a virtual monitoring environment that aims ...
02/09/2026
Two new mixing & mastering plug-ins revealed
AIR Music Tech have just introduced the Stereophonic Bundle, a pair of processing plug-ins designed to provide ...
02/09/2026
Rohde & Schwarz has achieved initial verification of 3GPP Rel. 17 power-saving f...
02/09/2026
Bilbao - 3rd September 2026 -AgileTV, a leading provider of end-to-end TV and vi...
02/09/2026
Why agentic media supply chains need experience design built around visibility, reversibility and human authority
When AI can generate a functional interface ...
02/09/2026
Six-country survey finds 26% of sports fans frequently unable to determine where...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
KOKKEDAL, DENMARK, SEPTEMBER 1, 2026 DPA Microphones announces its new 6388 CORE Headset Microphone, a high-performance directional headset designed for dema...
02/09/2026
Pliant Technologies will highlight its CrewCom CXD 32CF 32x32 Dante /AES67 Digital Audio Network Interface, a powerful connectivity solution designed to expand ...
02/09/2026
iWedia, a leading provider of software solutions for connected TV devices, today announced two enhancements to Teatro Pulse, its end-to-end TV service operation...
02/09/2026
Signiant, trusted by the media industry for accelerated content movement for more than 20 years, will showcase the latest evolution of the Signiant Platform at ...
02/09/2026
With a contractual agreement to supply a leading UK sports broadcaster with outside broadcast services for 104 football matches per season over the next four ye...
02/09/2026
IBC2026 will put sport firmly at the centre of the global media and entertainment technology conversation with the strongest sports showing in the event's h...
02/09/2026
PTZOptics will bring a hands-on showcase of intelligent video production to IBC2026 (11-14 September, RAI Amsterdam), with demonstrations spanning new camera te...
02/09/2026
OOONA, a global provider of professional management and production tools for the media localization industry, today announced the launch of OOONA Go, a ready-to...
02/09/2026
EON Media will make its European debut at IBC2026 (September 11-14, RAI Amsterdam) in the show's Future Tech Zone (Hall 14.FT5). The company is launching it...
02/09/2026
Frequency, the engine behind many of the worlds leading streaming television channels, will demonstrate at IBC2026 how integrating intelligence throughout chann...
02/09/2026
On-device AI platform gives broadcasters and content creators purpose-built tools for real-time vertical video production and AI-enhanced sports coverage...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
02/09/2026
Next-Generation Freeform Control Surfaces Lay the Foundation for AI-Enabled Media Operations
At IBC2026 (Sept. 11 14, RAI Amsterdam, Stand #1.B73), Imagine Com...