Ericsson in the red in 2023, brakes tlc network market

Swedish telecommunications group Ericsson ended 2023 with a net loss of SEK 26.1bn (EUR 2.3bn) under the weight of the write-down of its US subsidiary Vonage, announced in the autumn, and restructuring charges.

For the Stockholm-based company, iol 2022 had ended with an annual profit of 19 billion kronor (EUR 1.66 billion). In the year just ended, however, revenues dropped by 3% to SEK 263.3bn (EUR 23.1bn) and fell short of analysts' forecasts, while in terms of net losses the result was in line with the consensus. The fourth quarter of 2023, a note said, saw a 16% drop in revenue, to 71.9 billion, and a 45% drop in profit, down to 6.2 billion.

There are also few certainties when it comes to forecasts. For 2024, in fact, the group offering telecommunications networks and services expects 'markets outside of China to continue to contract, with uncertainties similar to those experienced in 2023', said President and CEO Börje Ekholm.

Last year, tlc operators pulled the brakes on the development of 5G networks. "In our view," write Ericsson, "current investment levels are unsustainably low for many operators. We are therefore confident that market recovery can materialise." "Despite headwinds and a very weak mobile network market, we have been able to generate an annual ebit of SEK 21.4 billion. While the actions we have taken to improve our performance are paying off, we are not satisfied with our profitability and there is still work to be done," Ekholm said. "In this context we remain focused on managing the elements that are within our control including operational efficiency and careful cost management."