STOCKHOLM, Oct 17 (Reuters) – Ericsson reported a contraction in third-quarter revenue on Tuesday due to a drop in demand for 5G equipment in North America and the Swedish telecoms equipment maker s expects uncertainty over its mobile networks business to persist until 2024.
The group, which published its results in advance last week and took an impairment charge of $2.9 billion (2.75 billion euros) for the Vonage acquisition, said it expected that the results of the current quarter are similar to those of the previous three months.
Organic network sales in North America were down 60% from last year as customers adjusted their inventories and were slower to deploy new equipment. North America now represents only 23% of Ericsson’s sales, compared to 48% previously.
“Although the short-term dynamics are uncertain, we are confident that recovery will come,” Borje Ekholm, Ericsson’s chief executive, said in a statement.
“Our goal is to make Ericsson a more profitable company, returning to our cash flow target level and capturing the next major wave of networking innovation through substantial platform activity,” he said. he adds. (Reporting Supantha Mukherjee in Stockholm, French version Augustin Turpin)
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