Eircsson has reported that Q3 net sales declined by 4 per cent YoY, with strong growth in market area North America of 55 per cent offset by declines in most other market areas. Reported sales were SEK 61.8 billion (€5.46bn).

Adjusted gross income increased to SEK 28.6 billion driven by a strong expansion in Networks adjusted gross margin to 48.7 per cent. Reported gross income was SEK 28.2 billion. Net income was SEK 3.9 billion

Börje Ekholm, President and CEO, commented: “Q3 marks a period of laser-focus on execution of our strategic plan. We see increasing customer momentum around programmable networks that deliver differentiated performance, and expect further traction, supported by the JV we have announced with 12 of the world’s largest telecom operators. The JV will aggregate network APIs, accelerating commercialisation and generating new opportunities for network moneti”ation. We see signs that the overall market is stabilising with North America, as an early adopter market, returning to growth. While the market development is ultimately in the hands of our customers, we are working to deliver operational excellence regardless of market conditions. Our Q3 results demonstrate our progress, with strong gross margin expansion and free cash flow, benefiting from our commercial discipline and operational efficiency actions.

“We expect our Networks sales to stabilise year-on-year during Q4, driven by continued good growth in North America. However, we anticipate further near-term sales pressure in Enterprise as we focus on profitable segments. We launched a new private 5G enterprise product portfolio in Q3 to support performance improvement, which remains a key priority,” Ekholm concluded.

Shares in the company jumped 9 per cent following the earnings announcement.

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