Ericsson profit beats as more countries roll out 5G By Reuters

© Reuters. FILE PHOTO: Ericsson logo is seen at its headquarters in Stockholm, Sweden June 14, 2018. REUTERS/Olof Swahnberg/

STOCKHOLM (Reuters) -Sweden’s Ericsson (BS:) on Tuesday reported fourth-quarter core earnings above market estimates, helped by higher sales of telecom gear as more countries roll out 5G networks offsetting a loss of market share in mainland China.

The company’s quarterly adjusted operating earnings rose to 11.9 billion Swedish crowns ($1.28 billion) from 11 billion a year ago, beating the mean forecast of 10.30 billion, according to Refinitiv data.

Total revenue rose 2% to 71.3 billion crowns, beating estimates of 68.33 billion crowns. Sales in mainland China declined by 1.8 billion crowns, meaning that excluding mainland China organic sales growth was 5%.

A resurgent Nokia (NYSE:) increasing competition in several markets and the loss of telecom contracts in China following a ban of Huawei by the Swedish government had been dragging down Ericsson’s revenue.

The proportion of revenue Ericsson earns from China has dropped to around 3%, the company has previously said, from 10-11% before the domestic Swedish ban on Huawei.

Sales at Ericsson’s networks unit grew by 3% and gross margin rose to 46.4% from 43.5%.

In an effort to broaden its 5G portfolio Ericsson has spent more than $7 billion to buy two companies – cloud communications firm Vonage and wireless network gear maker Cradlepoint.

($1 = 9.2836 Swedish crowns)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Be the first to comment

Leave a Reply

Your email address will not be published.


*