Nokia's revenue and market capitalization

  •   DEHOUI Lionel

Founded in 1865, Nokia is a multinational telecommunications company based in Finland. During the year 2021, the group has made efforts to grow its business. The company's turnover grew throughout the year. Here are the details of the performance achieved by the telecom equipment manufacturer in the year 2021.

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Nokia's revenue and market capitalization
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Change in turnover in 2021

In the first three months of 2021, telecom equipment maker Nokia saw its quarterly revenue increase by 3.46% over Q1-2021 to €5.07bn. The turnover for this period in 2020 was €4.9 billion.

For the second quarter of 2021, Nokia's turnover increased by 6% compared to the same period last year. It reached an amount of EUR 5.31 billion compared to EUR 5.09 billion in Q1 2020.

In the third quarter of 2021, Nokia's sales continued to grow. They rose to EUR 5.39 billion from EUR 5.29 billion in the same period last year. This is an increase of 1.89% year-on-year.

The last quarter of 2021 saw total sales estimated at €6.4 billion. This marks a decline of 2.58% compared to the previous year in the same period. Turnover in Q4-2020 was EUR 6.56 billion.

In presenting the group's financial results for the half year, it must be said that turnover remained almost constant between H1-2020 and H1-2021. It reports EUR 10.00 billion for 2020 and EUR 10.38 billion for 2021. In the second half of the year, the results also remained almost static. The data published by the group shows total sales estimated at €11.81 billion in H2 2021 compared to €11.86 billion in H2 2020. There was therefore a year-on-year decline of 0.42%.

 

Overall performance in FY2020

For the twelve months of FY2021, Nokia Group's annual revenue amounted to EUR 22.2 billion. It shows a growth of 1.83% compared to the previous year. However, the company recorded a significant improvement in its operating profit for the full year 2021.

It reached 2.2 billion euros for the year. It should be noted that this value was calculated without considering the IFRS accounting standard. In 2021, the company generated a net result of 1.6 billion euros, compared to a loss of 2.4 billion euros the previous year.

As of the beginning of February 2021, the Finnish equipment manufacturer has already signed 195 contracts with operators for 5G equipment. This figure also takes into account paid trials and demonstrations as well as commercial agreements.

Current financial liabilities have almost halved between 2020 and 2021. 301 million in current financial liabilities at the end of 2021 compared to Non-current financial debts have also decreased in 2021, but with a lower rate (6.45%). 5.73 billion at the end of the previous year (2020).

17.4 billion in 2021. This represents a growth of 38.09% over one year. Total assets are then 40.05 billion euros at the end of December 2021 compared to 36.28 billion euros at the end of 2020. 36.28 billion at the end of 2020. The growth at this level is 10.39%.

Net earnings per share are positive (0.29) in 2021 compared to -0.43 in 2020. Diluted earnings per share are estimated at the same value in both periods. However, the operating margin is higher in 2021. It is 9.72 compared to 4.2 at the end of December 2020. Growth is 131%. Nokia's financial profitability is positive at the end of 2021. This positive value observed is 9.42 and it is the highest value for the last 5 years.

It should be noted that the average number of employees at the company has decreased in the 2021 financial year. The firm now employs 87,927 employees on average compared to 92,039 employees in 2020.

 

Nokia's performance in the first quarter of 2022

For 2022, the first quarter at Nokia brought in revenue of €5.34 billion compared to €5.07 billion in the same period in 2021. The year-on-year increase is therefore 5.32%. Operating profit (EBITDA) is EUR 757 million, down 7.9% compared to the same period in 2021. 583 million at the end of the first three months of 2022, compared to 551 million in the first quarter of 2021. So there was a growth of 5.80%.

Pre-tax profit is down 31.18% compared to Q1 2021. 372 million in 2021. Finally, net income is also down compared to the first quarter of 2021. 219 million in Q1 2022 compared to 261 million in Q1 2021.

The forecast for the second quarter of 2022 is for a turnover of 5.6 billion euros and a net result of 383 million euros.

 

Nokia's dividend and market capitalisation in 2021

Nokia's Annual General Meeting of Shareholders was held on 03 February 2022. During this meeting, they approved the Board's decision to pay a dividend for the financial year 2021. The dividend will be 0.08 euro. The ex-dividend date will be February 7, 2023 and the payment date February 16, 2023.

In addition, Nokia shares are listed on three stock exchanges. The company is listed on the Helsinki Stock Exchange, the New York Stock Exchange and the Euronext market of the Paris Stock Exchange. In 2021, its market capitalisation is estimated at 25.27 billion dollars.

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