Ericsson has reported 7 percent increase in sales to SEK 54.8 billion or $5.83 in the second quarter of 2019 — driven by growth in Networks in North America and North East Asia.
Borje Ekholm, president and CEO of Ericsson, said: “We see strong momentum in 5G business with both new contracts and new commercial launches as well as live networks. We have provided solutions for almost two-thirds of all commercially launched 5G networks.”
Ericsson was one of the key 5G network suppliers in both United States and South Korea. The telecom equipment maker said 5G network business has started contributing to the growth in revenue.
Ericsson achieved gross margin of 36.6 percent in Q2 2019 as compared with 34.8 percent in Q2 2018.
Ericsson has posted operating income of SEK 3.7 billion and operating margin was 6.8 percent. Ericsson’s net income reached SEK 1.8 billion against a net loss of SEK 1.8 billion in Q2 2018.
Ericsson has generated revenue of SEK 37.819 billion from network business, SEK 8.991 billion from digital services, SEK 6.323 billion from managed services and SEK 1.677 billion from other emerging business.
Ericsson has received 69 percent of the total global revenue from its network business, 16 percent from digital services, 12 percent from managed services and 3 percent from other emerging business.
North American telecom operators spent SEK 14.243 billion or $1.51 billion on Ericsson network equipment, SEK 2.225 billion on digital services and SEK 1.199 billion on managed services during the second quarter.
Ericsson India has reported sales of $233 million, representing 4 percent of the total sales of Ericsson. India is the third largest market for Ericsson after United States that brought 33 percent of revenue and China with 7 percent of the revenue contribution. South Korea also contributes 4 percent of the total revenue, while Australia contributes 3 percent of its total revenue.
Ericsson’s sales in South East Asia, Oceania and India were flat in Q2 2019. Ericsson’s managed services sales increased, mainly as a result of a contract won in 2018. Digital Services sales decreased due to lower legacy product sales in India, while Networks sales were stable.
Ericsson’s revenue from South East Asia, Oceania and India were SEK 4.995 billion from network business, SEK 918 million from digital services, SEK 1.037 billion from managed services and SEK 15 million from other emerging business.