Nokia said it beat its operating margin target for 2021, in part thanks to one-off items like profits from venture capital investments. The company achieved a comparable operating margin of 12.4-12.6 percent, according to preliminary estimates, better than the forecast of 10-12 percent. For 2022, the company targets a margin of 11-13.5 percent.
Nokia noted that growth in 2022 will be less pronounced due to the one-offs in 2021, while the guidance also takes into account expected continued improvements in the underlying business, supply constraints and cost inflation. The positive one-time items added around 150 basis points to the margin in 2021, up from 100 points expected at its Q3 earnings report. These were related to venture fund investments, a one-off software contract in Q2, bad debt provision reversals and some other one-time benefits.
The underlying performance of the business in 2021 was in line with expectations, the company said. Annual revenues reached around EUR 22.2 billion, in line with Nokia's forecast for EUR 21.7-22.7 billion.
