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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Friday, October 23, 2020

Chinese 5G Demand Lifts Ericsson

Ericsson reported a 7% year-on-year increase in revenues for the third quarter of 2020 on a like-for-like basis to 57.5 billion Swedish krona (6.6 billion U.S. dollars). The rise was mainly driven by sales of 5G network equipment in mainland China, Ericsson said.  Overall network revenues rose 13% on a like-for-like basis.

The results reflect "high activity levels in North East Asia and North America," said Börje Ekholm, CEO of Ericsson. "Underlying business fundamentals remain strong in North America driven by consolidation in the U.S. operator market, pending spectrum auctions, and increased demand for 5G. The 5G contracts in mainland China have developed according to plan, contributing positively to profits in Q3 and are expected to improve further. Our business in Europe grew based on several footprint gains. While the pandemic has hurt revenues for several of our customers, and in some cases this has led to a reduction of capex, we have not seen any negative impact on our business, largely due to footprint gains. However, the pandemic negatively impacted our sales in Latin America and Africa." source: Ericsson statement

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