By Telecom Lead Team:
Wireless infrastructure and solutions major Ericsson India has posted SEK 9.8
billion in 2011 revenue, registering 13 percent increase over SEK 8.6 billion
India sales decreased 46
percent in Q4 2011 year-over-year to SEK 1.5 billion.
Networks sales were
positively impacted by the initial 3G rollouts in the first half of the year.
particularly around mergers and acquisitions as well as spectrum trading
policy, contributed to a slowdown in infrastructure investments in the second
half of the year.
The telecom market is
fragmented and cost competitive, which has created a renewed focus among
operators on reducing operating expenses. This has resulted in a growing
managed services business for
Globally, Ericsson’s gross
margin in 2011 declined from 38.2 percent to 35.1 percent due to higher share
of coverage projects, network modernization projects in Europe and 3G rollouts
Total number of employees at
the end of 2011 amounted to 104,525 (90,261), an increase by 3,635 from end
September, 2011, mainly related to its services business, primarily
in India and Brazil.
For the full year the net
number of employees increased by 14,264, of which 12,330 in services, 1,770 in
R&D and 995 in supply. In other job areas, there were reductions or flat
development in the number of employees. In 2011, 1,334 people joined Ericsson
through acquisitions and 3,775 through managed services agreements.
Managed Services sales
increased by 13 percent year-over-year to SEK 6.0 billion (SEK 5.4 billion) and
14 percent sequentially, mainly driven by India and Latin America.
Globally, multimedia sales
in Q4 decreased 2 percent year-over-year and increased 33 percent sequentially.
Sequentially, multimedia brokering and TV showed good development. For the full
year, sales were flattish, negatively impacted by political unrest in Middle
East and weak development in India.
Ericsson India financial performance in Q3 2011
India sales increased 7 percent year-over-year and decreased -19 percent sequentially. India sales grew to SEK 2.3 billion in Q3 2011 from SEK 2.1 billion in Q3 2010. Networks sales in India decreased sequentially due to slower 3G investments. The initial 3G rollouts reached a temporary peak already in the second quarter 2011 following three quarters of intense deployments.
Sales in Latin America, Northern Europe and Central Asia, the Middle East, Sub Saharan Africa, China and North East Asia grew in double digits. North America, Ericsson’s largest contributor, reported -6 percent growth to SEK 12.1 billion in Q3 2011 from SEK 12.9 billion in Q3 2010.
Ericsson’s global revenue in 2011
major Ericsson has clocked SEK 226.9 billion revenue in 2011, showing 12
percent growth over 2010’s SEK 203.3 billion. Ericsson’s Q4 2011 income is up 1
percent to SEK 63.7 billion from SEK 62.8 billion in Q4 2010.
The wireless infrastructure
provider’s full year profit is up 12 percent to SEK 12.6 billion from SEK 11.2
billion in 2010. Profit in Q4 2011 took a beating by registering 66 per cent
dip at SEK 1.5 billion from SEK 4.4 billion in Q4 2010.