Ericsson Q2 EBITA Excl. Restructuring Charges Declines; Organic Sales Down 9%

(RTTNews) - Ericsson (ERIC) posted a second quarter net loss of 0.6 billion Swedish kronor compared to profit of 4.7 billion kronor, prior year, primarily due to restructuring charges. Loss per share was 0.21 kronor compared to profit of 1.35 kronor. EBITA excluding restructuring charges was 3.7 billion Swedish kronor compared to 7.5 billion kronor. EBITA margin was 5.7% compared to 12.0%. .

Second quarter reported sales were 64.4 billion Swedish kronor compared to 62.5 billion kronor, last year. Group organic sales declined by 9%. Segment Networks sales declined by 13%, while segment Enterprise sales grew by 20%.

Ericsson said it is well on track to reduce annual run rate by at least 11 billion kronor by year-end, which will positively impact the P&L over the coming quarters with full effect during 2024.

Overall, Ericsson expects third quarter EBITA margin to be in line with or slightly higher than second quarter, followed by a seasonally stronger fourth quarter.

The company forecasts 5G subscriptions to top 1.5 billion by end-2023 and reach 4.6 billion by 2028. Ericsson remains focused on reaching the lower end of the 15-18% EBITA margin long-term target range in 2024.

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