Citing a challenging environment and macroeconomic uncertainties, Ericssion reported that its Q3 2023 group organic sales declined by -10% YoY. Segment Networks organic sales declined by -16% while Enterprise and Cloud Software and Services sales grew organically. Reported sales decreased by -5% to SEK 64.5 (68.0) b.
Börje Ekholm, President and CEO of Ericsson
"In a challenging operating environment, Ericsson delivered third quarter results in line with our guidance. Consistent with the rest of our industry, we expect the macroeconomic uncertainty to persist into 2024, which impacts our customers’ investment ability. We are addressing these challenges with a focus on elements within our control, namely cost management and operational efficiency. We are on a journey to fundamentally reposition our business and we continue to execute on our strategy to extend our leadership in mobile networks, grow our enterprise business, and drive lasting cultural transformation."
Some key points
- Q3 performance was in line with guidance, with an EBITA margin of 7.3% and an EBITA of SEK 4.7 b.
- Group organic sales declined by -10%, with a -16% organic decline in Networks partly offset by 5% organic growth in Cloud Software and Services and 11% in Enterprise.
- Networks organic sales in North America were down by -60% YoY from a record quarter in Q3 2022, due to customers‘ inventory adjustments and a slower deployment pace. Sequentially, Networks sales declined by -2% in line with previous trends. The decline in North America was partly offset by growth in India as well as some early 5G markets resuming investments.
- More than one million Ericsson radios in the field are hardware prepared for open fronthaul which underpins our support for openness across our Cloud RAN and radio portfolios.
- Cloud Software and Services continued executing on the turnaround.
- Ericsson saw continued strong growth in Enterprise Wireless Solutions, and had a second consecutive quarter of positive EBITA in Global Communications Platform.
