Ericsson’s net profit drops 30pc


23 Apr 201030 Views

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Swedish telecoms equipment maker Ericsson has reported a 30pc drop in net profit during the first three months of 2010. Ericsson posted net profit of SEK 1.3bn (US$170m) for the first quarter of the year, down from the SEK 1.8bn posted a year earlier.

The group’s sales also fell during the quarter, down 9pc year-on-year to SEK 45.11bn. Ericsson said while sales in its Networks division declined, hit by operators in developing markets exercising caution in their investments, it saw a rise in Global Services sales.

The group said that it had seen a continued increase in mobile data traffic during the quarter, mainly in North America and Western Europe, which was driven by increased consumer usage of smartphones and other devices.

Ericsson is forecasting that mobile data traffic will double annually over the next five years.

Hans Vestberg, president and CEO of Ericsson, said the group had seen “mixed operator investment behaviour across regions and markets” during the first quarter of 2010.

Photo: Hans Vestberg, president and CEO of Ericsson

Article courtesy of Businessandleadership.com