Sony Pixel Power calrec Sony

Nokia Corporation Financial Report for Q2 and Half Year 2020

01/08/2020

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)
LINK: https://www.nokia.com/about-us/news/releases/2020/07/31/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...

14/08/2026

Conservative Groups Urge FCC to Stay Out of Affiliate Deals

Share Copy link Facebook X Linkedin Bluesky Email...

14/08/2026

LiveU and Panasonic LUMIX Launch 'Live Anywhere' Production Workflow

Share Copy link Facebook X Linkedin Bluesky Email...

14/08/2026

Cineverse Launches New Tools to Repurpose Audio Ads for CTV

Share Copy link Facebook X Linkedin Bluesky Email...

14/08/2026

Hearst Television Ups Derek Schnell to VP, News

Share Copy link Facebook X Linkedin Bluesky Email...

14/08/2026

amaran Makes Its Global Debut in Audio With the Launch of...

amaran, pioneer of lighting tools for creators, today announced the amaran Mic, a 99 wireless desktop microphone that brings the brand into audio for creators ...

14/08/2026

Creative COW Roundtable: Introduction to the New After Effects Assistant - AEAI

Creative COW Roundtable: Introduction to the New After Effects Assistant - AEAI Brie Clayton August 13, 2026 0 Comments On August 23, 2026 at 9am PDT/...

14/08/2026

Life on Waves Posted with DaVinci Resolve Studio

Life on Waves Posted with DaVinci Resolve Studio Brie Clayton August 13, 2026 0 Comments Collaborative editing and color grading workflow supported by...

14/08/2026

Why Bulletproof Video Project Archiving Is Non-Negotiable

Why Bulletproof Video Project Archiving Is Non-Negotiable John Carboni August 13, 2026 0 Comments In video production, the work is far from over when ...

14/08/2026

Stacked with Boston Conservatory Talent, Shakespeare on the Common Celebrates Its 30th Anniversary

Stacked with Boston Conservatory Talent, Shakespeare on the Common Celebrates It...

13/08/2026

LaLiga Renews Broadcast Agreements with ESPN and DSports in South America Through 2031/32

LaLiga has renewed broadcast agreements with ESPN and DSports covering Spanish-l...

13/08/2026

Rockstar Energy Open Builds Third Portland Show Around AI-Powered Vertical Feed, Remote Operators

Three days of skateboarding competitions, live music, and other programming will...

13/08/2026

IBC 2026: Matrox Video to Showcase IP and Software-Defined Technologies

Matrox Video will showcase its portfolio of IP and software-defined technologies at IBC2026 (Booth 7.B15, RAI Amsterdam, September 11-14). The portfolio includ...

13/08/2026

IBC 2026: SMPTE to Present Sessions, Workshops, and Networking Events

SMPTE will present expert-led sessions, professional workshops, and networking events at IBC2026. The organization will be located in the IBC2026 Owner Pavilion...

13/08/2026

IBC 2026: Clear-Com to Showcase Communications Solutions

Clear-Com will exhibit at IBC2026 (Stand 10.D29, September 11-14, Amsterdam), showcasing FreeSpeak Cell, Avalon IP Station, updates to Arcadia Central Station, ...

13/08/2026

Advanced Systems Group Appoints Eran Binyamin Zeitoun as Senior Technical Program Manager

Advanced Systems Group (ASG) has appointed Eran Binyamin Zeitoun as Senior Techn...

13/08/2026

2026 SVG Venues & Teams Summit Heats Up Kaseya Center in Miami

Miami HEAT, Florida Panthers, Orlando Magic, University of Miami join leading vendors for a day of gameday-production talk in South Florida The 2026 SVG Venues...

13/08/2026

MLB at Field of Dreams Returns as Netflix Joins the Effort, Leans Into Cinematic Look at Newly Permanent Ballpark

NBC Sports is producing the Twins-Phillies game alongside the streamer, which is...

13/08/2026

IBC 2026: Oracle to Showcase Cloud Media Workflows

Oracle Cloud Infrastructure (OCI) will exhibit at IBC2026 (Hall 5, Booth 5.A21, September 11-14, Amsterdam), demonstrating cloud-based workflows across low-late...

13/08/2026

IBC 2026: Dalet to Participate Accelerator Programme with AI Live Sports Workflow Demo

Dalet will participate in the IBC2026 Accelerator Media Innovation Programme, co...

13/08/2026

Cox Media Group Announces Local Broadcast Deals with Orlando Magic and Charlotte Hornets

Cox Media Group (CMG) has announced multi-year local broadcast rights agreements...

13/08/2026

Jnger Audio to Demonstrate Cloud-Based DTV+ Workflow at SET Expo 2026

J nger Audio will join Fraunhofer IIS and industry partners to showcase a cloud-based, DTV+-compliant workflow at SET Expo 2026 in S o Paulo, August 17-20. DTV+...

13/08/2026

IBC 2026: Olympic Broadcasting Services to Receive International Honour for Excellence

IBC has announced that Olympic Broadcasting Services (OBS) will receive the Inte...

13/08/2026

NESN Expands Red Sox Broadcast Distribution for Jimmy Fund Telethon

NESN has partnered with WSBK-TV38 to broadcast Boston Red Sox games on August 17 and 18 over the air, extending the reach of the 24th annual WEEI/NESN Jimmy Fun...

13/08/2026

LiveU and Panasonic LUMIX Launch Live Anywhere Mobile Production Workflow

LiveU and Panasonic LUMIX have announced the Live Anywhere workflow, demonstrated at NAB 2026 and InfoComm 2026 in collaboration with Social180Group. The work...

13/08/2026

IBC 2026: Chyron to Showcase Sports Workflow Solutions

Chyron will demonstrate its sports analysis, graphics, remote production, virtual production, and venue control solutions at IBC2026 (Booth 7.A23). This year...

13/08/2026

Ratings Roundup: Pro Football Hall of Fame Game Draws 7 Million During Quiet August for Sports

Ratings Roundup is a rundown of recent ratings news and is derived from press re...

13/08/2026

ESPN/ABC, NBC/Peacock, Prime Video Set National Slates for Year 2 of NBA Rights Deal

Season tips off Oct. 20 and runs through April 11; Christmas Day, NBA Cup, All-S...

13/08/2026

VAEMI announce the Synterra

Company preview bio-interactive' synthesizer VAEMI have announced the upcoming launch of a new standalone bio-interactive' generative synthesizer....

13/08/2026

Ravine DSP update Inter::State

Plug-in host gains new Slot Scenes feature Ravine DSP have recently updated their innovative plug-in host, kitting it out with a new feature that brings yet...

13/08/2026

Tubi Media Group Partners with Gracenote to Unlock Additional Value in Content Discovery and Programmatic CTV Advertising

New Agreement Aims to Leverage Gracenote Infrastructure to Create More Relevant ...

13/08/2026

CMG Expands Local Sports Offering With Two NBA Deals

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Olympic Broadcasting Services to receive IBC2026 Internat...

IBC today announced that its most prestigious honour, the International Honour for Excellence (IHFE), will be presented to Olympic Broadcasting Services (OBS), ...

13/08/2026

Dalet Demonstrates the Future of AI-Orchestrated Live Spo...

Dalet, a leading technology and service provider for media-rich organizations, today announced its participation in the IBC2026 Accelerator Media Innovation Pro...

13/08/2026

dzjinius to showcase new dzjinius on-set application at I...

dzjinius, the all-in-one production management platform for the media and entertainment industry, will showcase its new application, dzjinius on-set , at IBC20...

13/08/2026

BCE Demonstrates Sovereign Cloud Media Workflows powered...

Broadcasting Center Europe (BCE), a leading European provider of media services, system integration and product development, will demonstrate an end-to-end sove...

13/08/2026

Clear-Com to Showcase Communications Solutions for Broadc...

Clear-Com is returning to IBC 2026, taking place September 11-14 in Amsterdam, Netherlands. At Stand 10.D29, Clear-Com will spotlight the award-winning FreeSpe...

13/08/2026

Leader to highlight advanced Test and Measurement solutio...

Test & measurement innovator, Leader Electronics of Europe, will showcase its comprehensive portfolio of Leader, PHABRIX and LeaderPhabrix test and measurement ...

13/08/2026

KRK Brings Advanced Wireless Control to Professional Monitoring With New V Series Five Studio MonitorsKRK Brings Advanced Wireless

KRK Brings Advanced Wireless Control to Professional Monitoring With New V Serie...

13/08/2026

Anthony Noack Captures Artist's Journey in Estonia with Blackmagic Design

Anthony Noack Captures Artist's Journey in Estonia with Blackmagic Design Brie Clayton August 12, 2026 0 Comments Solo filmmaker documents concept...

13/08/2026

ARRI Image Science makes its mobile debut in the HONOR Robot Phone

ARRI Image Science makes its mobile debut in the HONOR Robot Phone Brie Clayton August 12, 2026 0 Comments Hero image displays the HONOR Robot Phone, ...

13/08/2026

ASG Adds Eran Binyamin Zeitoun as Senior Technical Program Manager

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Vinten To Feature Manual, Robotic Camera Support Offerings At IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

SMPTE Unveils IBC 2026 Plans

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

IP Showcase on the Water Announces Schedule for IBC 2026

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Spectrum, Optimum Ink New Deals for News Carriage and Ads

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

IAB Tech Lab Updates Privacy Standards

Share Copy link Facebook X Linkedin Bluesky Email...

13/08/2026

Suitest Highlights New AI-Powered Device Testing and Qual...

Suitest's Test Automation Platform Simplifies Video Quality Assurance, Monitoring, and Device Certification Across the OTT Ecosystem At IBC2026, Suitest, a...