Rise in 5G sales buoys Ericsson’s quarterly profit

A rise in 5G network sales and software revenue helped Ericsson (ERICb.ST) report higher-than-expected quarterly core earnings on Friday, when it said it was sticking to its financial targets for 2020 and 2022.

The Swedish company has experienced a recovery under Borje Ekholm – a former CEO of Investor AB (INVEb.ST) – who took the position in 2017, having been chosen to steer the company through one of its deepest crises. 

Ericsson and Finland’s Nokia (NOKIA.HE) are expected to benefit from Britain’s decision this week to ban Chinese supplier Huawei [HWT.UL] from next-generation 5G networks. 

Sales in Ericsson’s mainstay network business grew 4% in the second quarter, mostly due to contract wins in China. It won a share of 5G business – alongside Chinese giants Huawei and ZTE – from the country’s three largest telecom operators: China Mobile, China Telecom and China Unicom.

Source: Reuters (2020)

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