Ericsson Q4 earnings soar 52% on increased sales

Wireless equipment maker Ericsson reported that its fourth-quarter earnings grew 52%, boosted by increased sales in North America and a strong growth in services, a report from Associated Press said.


Ericsson reported a net profit for the quarter of 8.5 billion kronor ($1.18 billion), up from 5.6 billion kronor ($737 million) a year earlier. For the year, it reported net profit of 24.3 billion kronor ($3.19 billion).


The earnings came on sales of 45.7 billion kronor ($6.01 billion) for the quarter, a 16 % rise. Full-year sales were 151.8 billion ($19.97 billion), up 15%, the report said.
However, Ericsson's closely watched gross margin for the quarter dropped to 44.2%, from 45.6 % a year earlier, as sales of services, which have lower margins, grew faster than other sales, the report said.


Ericsson's revenue growth in the fourth quarter was driven by an 82% rise in North American sales.


The report further said Ericsson landed one its biggest service deals ever during the quarter, when it signed a contract in December worth more than 15 billion kronor ($1.96 billion) to manage the mobile network of British operator 3.

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.