Business
Sweden’s Ericsson fourth-quarter core profit growth beats forecast on 5G boost
Published by linker 5
Posted on January 29, 2021
Global Banking and Finance Review
Company
Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
Published by linker 5
Posted on January 29, 2021
STOCKHOLM (Reuters) – Sweden’s Ericsson on Friday reported fourth-quarter core earnings ahead of market estimates on the back of strong sales of 5G equipment while the company continued to benefit from the ban of China’s Huawei in several countries.
The company’s quarterly adjusted operating earnings rose to 11 billion Swedish crowns ($1.32 billion) from 6.5 billion crowns a year earlier, beating the mean forecast of 8.58 billion crowns, according to Refinitiv estimates.
Sales at its Networks unit rose 20% with gross margin climbing to 43.5% from 41.1%.
“This reflects continued high activity levels in North America and North East Asia, and also in Europe where we further increased the market share,” Chief Executive Börje Ekholm said in a statement.
The upbeat results capped an eventful year that saw increased deployment of telecom networks as operators added capacity due to the coronavirus pandemic and several countries, including Sweden, followed the United States in banning its rival Huawei from 5G networks.
The Swedish firm, which unlike Nordic rival Nokia got 5G radio equipment contracts from China’s three largest telecom operators, has been vocal about the exclusion of the Chinese company from Sweden.
The Swedish telecom regulator’s decision to exclude Chinese vendors from 5G networks may create exposure for our operations in China, Ekholm said.
Total revenue rose 5% to 69.6 billion crowns, beating estimates of 68.35 billion crowns.
Gross margin surged 40.6% in the quarter from 36.8% in the year-ago period.
(Reporting by Supantha Mukherjee in Stockholm; editing by Johannes Hellstrom and Sherry Jacob-Phillips)