Q3 2021 Earnings Call
Oct 28, 2021, 4:30 p.m. ET
- Prepared Remarks
- Questions and Answers
- Call Participants
Good morning, ladies and gentlemen and welcome to Nokia’s third quarter 2021 results call. I’m David Mulholland, head of Nokia’s investor relations. And today in Aspo with me is Pekka Lundmark, our president and CEO; along with Marco Wiren, our CFO. During this call, we will be making forward-looking statements regarding our future business and financial performance and these statements are predictions that involve risks and uncertainties.
Actual results may, therefore, differ materially from the results we currently expect. Factors that could cause such differences can be both external as well as internal operating factors. We have identified such risks in more detail in the section titled Operating and Financial Review and Prospects, risk factors of our 2020 annual report on Form 20-F as well as other filings with the U.S. Securities and Exchange Commission.
Within the presentation today, unless otherwise stated, references to growth rates will be mostly on a constant-currency basis and margins will be on a comparable reporting basis. Please note that our results release, the complete report with tables and the presentation on our website include comparable results information in addition to the reported results, including a detailed explanation and reconciliation between the two. So with that, in terms of what we’ll go through today, I’ll shortly hand over to Pekka, who will go through a brief overview of our financial performance before giving an update on the project progress that we’re making in terms of the strategic objectives we’ve given each business. We’ll then run through a quick word on enterprise, along with how we see the supply chain constraints and then hand over to Marco, who will go through the financial performance in more detail before we get to Q&A.
So with that, over to Pekka.
Pekka Lundmark — President and Chief Executive Officer
Thank you very much, David and thank you, everybody, for joining today. We had another great quarter, third quarter 2021, strong execution. Also some headwinds that I want to highlight, especially when it comes to top line because of component availability. I’ll come back to that soon because in the big picture, when we look at our numbers in the quarter, we had a 2% top-line growth.
It’s 6% year to date. But what is interesting is that actually we could have grown faster without supply chain constraints. So the main point here is that we are currently not constrained by market demand or our own production capacity. But what is constraining our growth at the moment is availability of components.
2% growth. A couple of highlights. First of all, our most important and largest market, North America, we had excellent 9% growth despite some of these earlier communicated headwinds that we had in mobile networks. The other businesses in North America very well compensated for the decline that we had in mobile networks, which was very much expected.
Then a couple of other highlights. Cloud and network services had really good 12% growth and Nokia Technology is also double digit, 11% growth. And network infrastructure overall against a pretty strong Q3 last year had 6% growth. And within the network infrastructure group, the Fixed Networks …….