Ericsson: Market weakness will continue into Q4 as it grapples with reduced 5G investment in Europe and the US
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Update time : 2023-10-21 11:56:58
Ericsson has said that market weakness will continue into the fourth quarter, as the company struggles to cope with reduced investment in 5G mobile infrastructure by operators in Europe and the US. In its Q3 results statement on Oct. 17, Ericsson noted, "We expect the underlying uncertainty affecting our mobile networks business to continue into 2024."
Ericsson reported its earnings for the quarter early last week, citing a SEK32 billion ($290 million) impairment on its enterprise-focused Vonage unit, which it acquired last year. The company had forecast an earnings before interest, taxes and amortization (EBITA) margin of about 10 percent for the quarter and indefinitely postponed its target of 15 to 18 percent.
Ericsson had previously expected the mobile network market to recover by the end of the year and said it would focus on improving next year's EBITA to the lower end of its target. But Ericsson now says it aims to reach that level as soon as possible.
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