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Ericsson loses 2,322 million in 2023 for Vonage and warns of market weakness in 2024

MADRID, 23 Ene.

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Ericsson loses 2,322 million in 2023 for Vonage and warns of market weakness in 2024

MADRID, 23 Ene. (EUROPA PRESS) -

The Swedish manufacturer of telecommunications networks and equipment Ericsson recorded a net attributable loss of 26,446 million crowns (2,322 million euros) in 2023, compared to the net attributable profit of 18,724 million crowns (1,644 million euros) in the previous year. as reported by the multinational, which has warned of the weakness of the market outside China in 2024.

Ericsson's result for the entire last year reflects the negative impact of 31,900 million crowns (2,801 million euros) assumed by the deterioration of goodwill attributed to the acquisition of Vonage, which the Swedish company acquired in 2021.

The company's revenue in 2023 reached 263,351 million crowns (23,125 million euros), 3% less than in 2022, although in organic data, which excludes the impact of the exchange rate, the decline was 10%.

This drop in Ericsson's business reflects the 11% decline in the networks area, with 171,400 million crowns (15,051 million euros), while the cloud and services business had a turnover of 63,600 million crowns (5,515 million euros ), 5% more, and the company one 76% more, up to 25,700 million crowns (2,257 million euros).

Between October and December, the Swedish company recorded an attributable net profit of 3,394 million crowns (298 million euros), which represents a year-on-year decrease of 44%, while revenues totaled 71,881 million crowns (6,312 million euros ), 16.4% less.

The president and CEO of Ericsson, Börje Ekholm, indicated in the presentation of the multinational's accounts that the mobile network industry "remains a challenge" and Ericsson expects the current market uncertainties to prevail in 2024 with a new decline of the RAN market outside China as customers remain cautious and the pace of investment normalizes in India.

"Looking ahead to 2024, we expect the market outside of China to continue to decline, with uncertainties similar to those experienced in 2023. In this environment, we remain focused on managing the elements within our control, including operational efficiency and strict asset management. costs," he summarized.

However, the executive stressed that the underlying demand derived from growing data traffic and the fact that 5G is only in the early stages of development will require additional investments in the network, as current investment levels "are unsustainably low." for many operators", so the multinational is confident that a market recovery should materialize.

However, Ekholm cautioned that the timing of market recovery is ultimately in the hands of customers. ?

Keywords:
Ericsson