Ericsson Q1 results reflect steady performance in the period

Ericsson announced that its first-quarter revenues rose by two per cent to SEK52 billion (US$7.9 billion), but that net profits plunged by 86 per cent year-on-year to SEK1.2 billion.

Last year’s divestment of Sony Ericsson had resulted in a one-off gain of SEK 7.7 billion in the previous results. Excluding that, net profits would have risen year-on-year by SEK100 million.

The company narrowly missed most analyst expectations for both revenue and profit figures.

The sales increase was primarily driven by Networks and rollout services, following high project activities primarily in Europe and North America. North America remained the strongest region and showed a growth of 23 per cent despite the decline in CDMA.

North East Asia had a challenging quarter with lower sales in South Korea, which remains one of the most advanced LTE markets.