Ericsson reported sales revenue of SEK 49.8 billion during the first quarter of 2021 as compared with SEK 49.8 billion in Q1 2020.
The lack of growth in the first-quarter revenue of Ericsson indicates that the Sweden-based telecom equipment maker is yet to cash in on the opportunities arised from the business lose to main rival Huawei Technologies.
Ericsson has generated 36 percent of total sales from the United States, 8 percent from Japan, 4 percent from Australia, 3 percent from India and 3 percent from the United Kingdom during the first quarter of 2021.
Ericsson said sales adjusted for comparable units and currency grew 10 percent despite SEK 1.6 billion lower IPR licensing revenues and four of the five market areas showed double-digit growth.
Gross margin excluding restructuring charges improved to 42.9 percent from 40.4 percent with margin improvements in all segments despite lower IPR licensing revenues. Reported gross margin improved to 42.8 percent from 39.8 percent.
Ericsson said EBIT excluding restructuring charges improved to SEK 5.3 billion (10.7 percent) from SEK 4.6 billion (9.3 percent) driven by Networks, more than offsetting the negative impact from lower IPR licensing revenues. Reported EBIT was SEK 5.3 billion as compared with 4.3 billion.
Networks sales increased by 15 percent, adjusted for comparable units and currency, driven by market share gains. Networks EBIT margin excluding restructuring charges was 19.9 percent in Q1 2021 against 16.8 percent in Q1 2020.