Ericsson revenue falls 6% as component costs bite and licensing income dries up
Ericsson booked SEK 52.7bn of revenue in the second quarter, down 6% from SEK 56.1bn a year earlier, as weaker patent licensing income and currency movements outweighed growth in a handful of regional markets. The Swedish equipment maker published the figures on Tuesday morning.
Profit, however, went the other way. Adjusted operating profit came in at SEK 6.52bn, or about $672m, excluding restructuring charges, ahead of the SEK 6.42bn analysts polled by LSEG had penciled in. Adjusted gross margin reached 48%, up two percentage points once last year’s one-off IPR settlement is stripped out.
Networks, still by far the largest segment, took the heaviest hit. Revenue there fell 8% to SEK 33.0bn, dragged down by the licensing shortfall rather than by hardware demand, which the company described as broadly stable year on year once IPR is excluded.
Cloud Software and Services rose 3% to SEK 14.7bn, helped by core network...
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