Interim reports Nokia’s main competitor Ericsson’s operating profit exceeded expectations

Ericsson estimates that it has further increased its market share in fifth-generation mobile technology.

Network devices Ericsson, which manufactures Ericsson, started the year with a favorable start, as the company estimates that it has increased its market share in fifth generation (5g) mobile phone technology, especially in Europe. The net sales of the network equipment unit increased by 15 percent in the first half of the year from the corresponding period last year. In the service business, on the other hand, net sales decreased.

In Europe, the company has won new 5g contracts, especially as authorities in many countries have ordered telecom operators to restrict the use of Chinese Huawei hardware and software due to security vulnerabilities.

Ericsson January-March net sales were SEK 49.8 billion (EUR 4.9 billion) and operating profit excluding non-recurring items was SEK 5.3 billion (EUR 524 million). Analysts estimate the company’s operating profit at SEK 52.6 billion (EUR 5.2 billion) and operating profit excluding non-recurring items at SEK 4.7 billion (EUR 464 million).

“Demand for 5g technology is high globally and key markets are developing at a rapid pace, providing us with opportunities to grow our core business,” says the CEO Börje Ekholm in the interim report.

To meet growing demand, Ericsson plans to increase investment in product portfolio development and increase its market share around the world.

Ericsson Finnish competitor Nokia will publish its January-March interim report next week. Nokia’s business is undergoing a major change as the company changes its way of doing things to better cope with 5 technology. According to preliminary estimates, Nokia’s operating profit has declined in the first half of the year.

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