Ericsson: margins improve with 5G

(CercleFinance.com) - Ericsson, the world's second-largest telecom equipment maker, reported better-than-expected quarterly results on Wednesday, including a significant improvement in margins.


The company's net profit for the first quarter reached 3.2 billion Swedish kronor (about 320 million euros), up 39% from 2.3 billion Swedish kronor a year ago.

While sales were flat at around 49.8 billion Swedish kronor, its gross margin reached 42.8%, compared to 39.8% for the first three months of last year.

This improvement is due to the network equipment manufacturer's sound cost control and, above all, the dynamic nature of its 5G business.

However, despite this solid publication, its share price was down 0.8% in early trading in Stockholm. Even so, it has still risen by nearly 20% YTD.


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