Shares in Telefonaktiebolaget LM Ericsson on Tuesday fell on Tuesday after the Swedish telecoms giant said it expects the slowdown in the global mobile networks industry will continue impacting its sales in 2024. The Stockholm phone company blamed a global slump in investment in the buildout of mobile communications infrastructure for a 10% drop in its full-year revenues, as it warned that headwinds in the market will likely continue into this year.
Shares in Ericsson
ERIC.B,
+0.02%
ERIC,
-0.85%
dipped 2% on Tuesday having lost 2% of their value over the past 12 months. Ericsson said its customers’ reluctance to invest in upgrading existing mobile infrastructure saw sales from its networks segment drop 23% in the fourth quarter, leading to a 17% decline in its fourth quarter revenues to SEK71.9 billion ($6.9 billion). The company’s slower sales saw its full-year earnings before interest, tax, depreciation and amortization (EBITDA) drop 27% year-on-year to SEK21.4 billion, in results that fell short of 13 analysts’ expectations it would generate EBITDA worth SEK25.7 billion, FactSet data shows The Swedish multinational, which was first established in 1876, said it now expects these challenging conditions will continue into 2024, as customers continue to take a cautious approach in all markets outside of China. The company warned spending on the buildout …
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Shares in Ericsson
ERIC.B,
+0.02%
ERIC,
-0.85%
dipped 2% on Tuesday having lost 2% of their value over the past 12 months. Ericsson said its customers’ reluctance to invest in upgrading existing mobile infrastructure saw sales from its networks segment drop 23% in the fourth quarter, leading to a 17% decline in its fourth quarter revenues to SEK71.9 billion ($6.9 billion). The company’s slower sales saw its full-year earnings before interest, tax, depreciation and amortization (EBITDA) drop 27% year-on-year to SEK21.4 billion, in results that fell short of 13 analysts’ expectations it would generate EBITDA worth SEK25.7 billion, FactSet data shows The Swedish multinational, which was first established in 1876, said it now expects these challenging conditions will continue into 2024, as customers continue to take a cautious approach in all markets outside of China. The company warned spending on the buildout …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]