Greatly increasing profit for Ericsson – Vasabladet

With the help of a billion revenue from Apple and other patent contract highlights Ericsson’s earnings by about 70 percent. But it was not enough – the share price plummeted.

– A sales approaching 74 billion (approximately EUR 8 million) is one of the best quarters we’ve had the last 10-15 years. We have a profit of 11.7 billion (1.3 billion euros), if you take away restructuring costs. It is also among the best we have had, says Ericsson CEO Hans Vestberg.

Behind the strong sales performance is according to Vestberg stabilization in North America, an improvement in China, lower costs and significantly higher patent fees. Especially from Apple, a contract that Ericsson has been flagged earlier. Compared to the full year 2014 rose patent and license revenues by 4.5 billion to 14.4 billion (EUR 1.6 billion).

The company is growing not

Ericsson has also served on the strong dollar. Adjusted for currency effects and adjusted for comparable units actually falling sales revenues, although Vestberg trying to point out that the decline slowed.

The turbulence in the Chinese economy is not a major concern for Vestberg. He notes that even at a lower growth rate is digitization important for the development of a country.

– Are you in 180 countries have to be prepared for turbulence.

But investors do not seem to be the same confident that Ericsson is on the right path. When the stock market closed the stock had fallen 6.3 percent. Telecom analyst Daniel Djurberg at Handelsbanken notes that profits were “slightly worse” than expected.

– But it’s not that great drama, he thinks.

Increased dividend

The Board proposes that the dividend to shareholders increased by nine percent to € 12.2 billion.

The CEO is cautious in his statements regarding market generally. The next few years will be important to position themselves within the 5G.

– As for 5G we’re early. Commercially, we will probably sell the network in 2020, said Vestberg.

In 2016, the focus will among other things be on improving profitability further, according to Vestberg, after a period of investment.

Vestberg confirm while the goal of implementing savings of 9 billion by 2017. However, global uncertainty has been the lead turning up preparedness for more savings if needed, according to Vestberg.