Ericsson Targets Profitability As Revenue Hits U.S. $7.88 Billion
(AllAfrica Via Acquire Media NewsEdge) Ericsson, the number one global provider of equipment for telecommunications service providers is targeting growth profitability amidst competition from various vendors and worldwide uncertainty in the global economy even as its net sales increased nine per cent and revenues topped $7.88 billion in the second quarter of the year.
For the quarter to June 30, 2012, Ericsson reported a net income of $172 million and revenue of $7.88 billion. Its global services areas showed good growth in the quarter due to operators' focus on operational efficiency and high project activities. The strong development for Support Solutions was driven by billing systems and TV solutions.
Its Global Services and Support Solutions together represented about half of the Group's revenues. In Sub-Saharan Africa, sales increased year on year and quarter on quarter, driven by increased investments in second generation technology (2G). 2G investments are expected to level out, while 3G will increase.
Mobile broadband penetration is slowly expanding from its present low level of four per cent, as low cost smartphones enter the market and the internet connectivity is improving.
Mr. Hans Vestberg, President and CEO for Ericsson worldwide looking at the outlook for the future said, "In 2010 we made a conscious decision to gain market share and increase technology and services leadership, well aware of the short-term profitability pressure. Our focus is now on translating these gains into sustainable profitable growth".
He said Ericsson will continue to stay close to its customers to monitor the impacts of macroeconomic development and political uncertainty in certain regions on their investments.
Copyright Leadership. Distributed by AllAfrica Global Media (allAfrica.com).
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