Ericsson today announced its sales target for 2020 from network business, managed services and digital business.
Ericsson is aiming to achieve total sale of SEK 210-220 billion in 2020 – driven by network business. Ericsson’s target is to achieve sales revenue of SEK 141-145 billion from networks business, SEK 41-43 billion from digital, SEK 23-25 billion from managed services and SEK 5-7 billion from emerging business in 2020.
The company did not reveal the contribution of 5G networks deals for the increase in sales for its networks business. Recently, Ericsson won a $3.5 billion 5G equipment deal from T-Mobile.
Ericsson is targeting operating margin of 15-17 percent from networks business, low single digit from digital, 5-8 percent from managed services and break-even from emerging business. Ericsson is aiming to achieve less than 10 percent operating margin in 2020 and less than 12 percent in 2022.
Ericsson will hold its Capital Markets Day 2018 in New York on November 8. The company will reveal its turnaround, strategy, and plans for future growth as well as details about its business segments and market trends.
“Our strengthened portfolio and competitive cost structure have enabled us to grow in the third quarter 2018, for the first time since 2014, despite headwind from exited contracts and businesses,” Borje Ekholm, president and CEO of Ericsson, said.
The Sweden-based telecom network maker said growth in networks business is expected to come from a stronger market, selective market shares gains, and expansion of the products into close adjacent markets.
The mobile equipment supplier said it is aiming for low single digit operating margin from digital services through cost reductions and efficiency improvements.