Swedish telecoms equipment maker Ericsson posted a profit after tax of SEK 2.6 billion (SEK 1 = 33.95 HUF), up 66 percent from SEK 1.6 billion a year earlier. Revenue, however, fell by 15 percent to SEK 53.3 billion from SEK 62.6 billion a year earlier.
Ericsson’s profit after tax amounted to SEK 2.6 billion up 66 percent from SEK 1.6 billion a year earlier. Revenue, however, fell by 15 percent to SEK 53.3 billion from SEK 62.6 billion a year earlier. EBIT (earnings before interest and taxes) jumped 35 percent to SEK 4.1 billion, with an EBIT margin of 7.7 percent, up from 4.9 percent in the first quarter last year, partly due to cost-saving measures.
At the Mobile World Congress in Barcelona, Ericsson presented its hardware and software solutions for building the high-performance and programmable networks needed to digitise. It has taken steps to build a global network platform of network APIs and announced three key partnerships with Verizon, AT&T and Amazon Web Services, and a communication API agreement with KDDI. The presentation of network functions through APIs will support the creation of new differentiated services.
In March, the company announced that it will eliminate around 1,200 jobs in Sweden and take a number of other steps to reduce costs, including streamlining its operations. The company expects market conditions to remain challenging as its customers remain cautious about their investments.
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