Ericsson India Q2 sales up 85% to $357 mn fueled by mobile broadband biz

Ericsson India today said its sales in second quarter of 2015 increased 85 percent to $357 million or SEK 3,049 million – fueled by continued mobile broadband investments, driven by growth in mobile data traffic.

Ericsson India, which competes with Huawei, ZTE, Alcatel-Lucent and Nokia Networks, said it clocked SEK 1.8 billion from telecom network business, SEK 1.1 billion from global services and SEK 0.2 billion from support solutions in Q2 2015.

Hans Vestberg, president and CEO of Ericsson, said: “Our growth strategy builds on a combination of excelling in our core business and establishing leadership in targeted growth areas. We see good progress in the targeted areas and sales continued its strong development from the first quarter. This was mainly driven by a solid sales development in OSS & BSS.”

Ericsson CEO Hans Vestberg

India is contributing 5 percent of Ericsson’s global revenue in Q2 2015 against 3 percent in Q2 2014. For comparison, the US contributes 24 percent (28 percent in Q2 2014), China 9 percent (6 percent), the U.K 3 percent (3 percent) and Italy 3 percent (3 percent).

Ericsson revenue globally increased 11 percent to SEK 60.7 billion. Ericsson said its net income fell 20 percent to SEK 2.1 billion.

The mobile broadband business in North America stabilized in the second quarter of the year. The year on year decline in North America was partly offset by an increased pace of 4G deployments in Mainland China. Sales growth was strong in the Middle East, India and South East Asia, while it continued to be weak in Japan.

Ericsson Networks business

Ericsson, announcing the financial result for Q2, said its sales from networks increased 8 percent to SEK 31.2 billion. Sales growth related to mobile broadband deployments in Mainland China, the Middle East and India contributed positively.

Ericsson global services

Ericsson said its sales from global services increased 14 percent to SEK 26.4 billion. Professional services business achieved growth in all ten regions.

Ericsson support solutions

Ericsson said its sales from support solutions increased 9 percent to SEK 3.1 billion. Sales of OSS and BSS continued to show strong growth while the TV and Media business declined due to lower software licensing sales.

Baburajan K
[email protected]