Sony Digital Rapids Pixel Power calrec Sony

Ericsson reports second quarter results 2019

17/07/2019

Second quarter highlights

Sales were SEK 54.8 (49.8) b. Sales adjusted for comparable units and currency increased by 7% driven by growth in Networks in North America and North East Asia. Reported sales grew by 10%.

Gross margin was 36.6% (34.8%). Gross margin excluding restructuring charges was 36.7% (36.7%).

Networks gross margin excluding restructuring charges improved to 41.4% (40.2%) YoY. Sequentially, Networks gross margin decreased from 43.2%, mainly due to costs related to a previously communicated license settlement agreement, negative impact from strategic contracts and lower IPR licensing revenues.

Operating income was SEK 3.7 (0.2) b. and operating margin was 6.8% (0.3%). Operating income excluding restructuring charges was SEK 3.9 (2.0) b. and operating margin excluding restructuring charges was 7.0% (4.1%).

Net income improved to SEK 1.8 (-1.8) b.

Free cash flow before M&A was SEK 2.2 (-0.2) b. Net cash amounted to SEK 33.8 (33.1) b.

SEK b. Q2

2019 Q2

2018 YoY

change Q1

2019 QoQ

change 6 months

2019 6 months

2018

Net sales 54.8 49.8 10% 48.9 12% 103.7 93.2

Sales growth adj. for comparable units and currency - - 7% - - - -

Gross margin 36.6% 34.8% - 38.4% - 37.5% 34.5%

Operating income (loss) 3.7 0.2 - 4.9 -24% 8.6 -0.1

Operating margin 6.8% 0.3% - 10.0% - 8.3% -0.2%

Net income (loss) 1.8 -1.8 - 2.4 -23% 4.3 -2.5

EPS diluted SEK 0.51 -0.58 - 0.70 -27% 1.21 -0.83

EPS (non-IFRS) SEK[1] 0.59 -0.09 - 0.80 -26% 1.39 0.02

Free cash flow excluding M&A 2.2 -0.2 - 4.1 -45% 6.3 0.6

Net cash, end of period 33.8 33.1 2% 36.1 -7% 33.8 33.1

Gross margin excluding restructuring charges 36.7% 36.7% - 38.5% - 37.5% 36.3%

Operating income (loss) excluding restructuring charges 3.9 2.0 89% 5.1 -24% 9.0 2.9

Operating margin excluding restructuring charges 7.0% 4.1% - 10.4% - 8.6% 3.1%

[1] EPS diluted, excl. amortizations and write-downs of acquired intangible assets, and excluding restructuring charges. Potential ordinary shares are not considered when their conversion to ordinary shares would increase earnings per share.

Non-IFRS financial measures are reconciled to the most directly reconcilable line items in the financial statements at the end of this report.

Comments from B rje Ekholm, President and CEO of Ericsson (NASDAQ:ERIC)

Organic sales growth[1] was 7% in the quarter, mainly driven by sales in North America and North East Asia. We see strong momentum in our 5G business with both new contracts and new commercial launches as well as live networks. To date, we have provided solutions for almost two-thirds of all commercially launched 5G networks.

5G momentum is increasing. Initially, 5G will be a capacity enhancer in metropolitan areas. However, over time, new exciting innovations for 5G will come with IoT use cases, leveraging the speed, latency and security 5G can provide. This provides opportunities for our customers to capture new revenues as they provide additional benefits to consumers and businesses.

In the quarter, gross margin[2] was unchanged YoY at 36.7%, with improvements in segment Networks being offset by lower margins in Digital Services and Managed Services.

Networks had another solid quarter with an organic sales growth[1] of 11% YoY, driven by 4G and 5G investments in North America and North East Asia as well as increased volumes related to strategic contracts. While the strategic contracts will be margin accretive in the long term, the impact on near-term profitability is negative. In the quarter we had a negative impact on gross margin and expect this impact to increase during the second half of the year. In addition, costs related to the previously announced license settlement agreement impacted margins negatively. Despite this, gross margin[2] improved to 41.4% (40.2%) YoY mainly due to increased IPR revenues. To ensure we meet customer requirements for fast and agile deliveries, we have decided to invest in a state-of-the-art 5G production site in the US to complement our global supply chain.

In Digital Services we continue to execute on the plan to reach low single-digit margins for 2020. The improvements are not linear and will vary between quarters. Organic sales[1] in Digital Services were down by -3% YoY as a result of rapid decline in legacy products. Gross margin[2] was 37.1% (42.6%). The decline in gross margin was mainly driven by a change in sales mix. The mix may vary between quarters. Our 5G and Cloud native portfolio is gaining customer traction and we are increasing related R&D investments to ensure portfolio readiness. The reshaped BSS strategy is gaining momentum and contracts were signed with several new customers in the quarter. The share of recurrent business is increasing, we are tracking towards having 75% of the 45 critical and non-strategic contracts addressed by year-end and we have cost efficiency programs in place throughout Digital Services.

In Managed Services the strategy is to enhance the customer offering by relying more on automation, machine learning and AI, which will longer-term change and improve the margin profile of the business. Near-term margins are negatively impacted by the increase in R&D investments. Organic sales[1] declined by -6%, mainly explained by the negative effect from the customer contract reviews. Gross margin[2] declined to 12.3% (14.0%) YoY, negatively impacted by timing of costs.

Organic sales growth[1] in Emerging Business and Other was 24% driven by a continued growth in iconectiv. Operating income[2] improved YoY to SEK -0.7 (-1.2) b. supported by increased profits in iconectiv and the divestment of MediaKind. In this segment we invest in initiatives that aim to scale and help create future business for Ericsson. With the exception of ic
LINK: https://wcm-com.ericsson.net/en/press-releases/2019/7/ericsson-reports...
See more stories from ericsson

Europe Stories

09/12/2019

Grainne Gallanagh announced as the fifth star to participate in RT One's Dancing with the Stars

Former Miss Universe Ireland, Grainne Gallanagh, is the fifth star confirmed to ...

09/12/2019

Michael Carruth, Yewande Biala and Fr. Ray Kelly Confirmed to Join the Line Up for RT's Dancing with the Stars

Tonight on The Late Late Show Ryan Tubridy unveiled three new Dancing with the S...

09/12/2019

Brian Dowling confirmed to join RT One's hit show Dancing with the Stars

After much speculation this week it was officially confirmed live on the Ray D'Arcy Show that television presenter Brian Dowling is set to join the line up ...

09/12/2019

Celebrations in Cork as Today with Maura and Dith mark their 1000th episode on RT One

On Monday, 9 December, Today with Maura and D ith will broadcast their 1000th s...

09/12/2019

Android 10 begins rollout with Xperia 1 and Xperia 5 smartphones

If you're the lucky owner of an Xperia 1 or an Xperia 5, you may have noticed that Google's Android 10 is now available for your device. The upgrade is...

09/12/2019

TVkey Cloud, developed by NAGRA and Samsung, wins Pay-TV Service Innovation of the Year at the VideoTech Innovation Awards

For consumers, TVkey Cloud enables instant activation out-of-the box and direct ...

09/12/2019

Kaplamin Ambalaj expands corrugated print production with second Onset X investment from Fujifilm

Kaplamin Ambalaj expands corrugated print production with second Onset X investm...

09/12/2019

SatNews: Year in Review 2019

By Simen K. Frostad Every year, the broadcast industry descends en masse on the RAI Convention Centre in Amsterdam. Once again, IBC provided invaluable insight...

09/12/2019

Alef One, Banijay Rights & France Televisions Join Forces For MH370 Drama

Banijay Rights, the leading distribution arm of Banijay Group, has today confirmed it will distribute the highly-anticipated, dramatic mini-series, Flight MH370...

09/12/2019

Sylphyo: the expressive wind controller

Aodyo wind controller now available more widely internationally The innovative Aodyo Sylphyo wind controller is now more readily available in the UK and North...

09/12/2019

New Bumblebee DIY ribbon mic arrives

Active RM7 kit comes from Latvia with love The Bumblebee RM7 kit. Latvian DIY mic manufacturers Bumblebee Pro, known for their ribbon mic kits, DI boxes an...

09/12/2019

Global video streaming market to reach $150 billion by 2026'

New figures from Allied Market Research Jenny Priestley 4 hours ago New figures from Allied Market Research target=_blank title=Share on LinkedIn class...

09/12/2019

Streaming services score over half of Golden Globes TV noms

Netflix leads nominations lists in both film and TV categories Jenny Priestley 37 mins ago Netflix leads nominations lists in both film and TV categories...

09/12/2019

Lise Heidal appointed SVP, global media solutions at NEP

Previously managing director for NEP Norway Jenny Priestley 5 hours ago Previously managing director for NEP Norway target=_blank title=Share on Linked...

09/12/2019

Mediaset, Vivendi deal could be delayed until early next year

Ruling expected after 10th January Dan Meier 4 hours ago Ruling expected after 10th January target=_blank title=Share on LinkedIn class=share-linkedin>...

09/12/2019

Tory immigration proposals offer little comfort to VFX industry

UK Screen Alliance criticises Boris Johnsons small amount of additional information Dan Meier 3 hours ago UK Screen Alliance criticises Boris Johnson'...

09/12/2019

NEP Announces the Appointment of Lise Heidal as SVP, Global Media Solutions to Lead Worldwide Initiative

NEP Announces the Appointment of Lise Heidal as SVP, Global Media Solutions to L...

09/12/2019

Astera AX1s Assist Muse Simulation Theory

Astera AX1s Assist Muse Simulation Theory posted: 09/12/2019 Twenty-four Astera AX1 LED battery powered wireless pixel tubes' played their part onsta...

09/12/2019

Sony and Verizon Demonstrate How 5G Stands to Transform Live Sports Production

Sony and Verizon Demonstrate How 5G Stands to Transform Live Sports Production posted: 09/12/2019 Samera System in Action at NRG Stadium Sony Imaging Produ...

09/12/2019

CP Communications Leverages Complete IP and Bonded Cellular Networking Architecture for New York City Marathon Coverage

CP Communications Leverages Complete IP and Bonded Cellular Networking Architect...

09/12/2019

Livestreaming at Ronald McDonald Houses' Charity Gala

Livestreaming at Ronald McDonald Houses' Charity Gala posted: 09/12/2019 Throughout the world, Ronald McDonald Houses (RMH) can be found within or clo...

09/12/2019

OH BOY It's Robe for Hecht

OH BOY It's Robe for Hecht posted: 09/12/2019 Swiss pop-rock band Hecht - well-known for their energized live shows, slick dance moves, foot-tapping t...

09/12/2019

Music Expo to expand internationally in 2020

Creative music-makers conference and workshops to hold first events outside the USA Artist/producer Jay-J presenting a seminar to a packed room at Music Expo ...

09/12/2019

Juan Luis Guerra Hopes it Rains Robe!

Juan Luis Guerra Hopes it Rains Robe! posted: 06/12/2019 Juan Luis Guerra recently kicked off his 2019 Literal Juan Luis Guerra 4.40 Tour Grandes xitos ...

09/12/2019

Cingularity selects PHABRIX Sx for power and portability on sports broadcasts

Cingularity selects PHABRIX Sx for power and portability on sports broadcasts posted: 09/12/2019 Combination of functionality, compact size and longevity ma...

09/12/2019

Mitchell Schellenger and Artiste Monet Shine on Logic tour

Mitchell Schellenger and Artiste Monet Shine on Logic tour posted: 09/12/2019 American rapper Logic toured 26 cities across North America this fall on hi...

08/12/2019

Ericsson reaches resolution on U.S. FCPA investigations

Ericsson (NASDAQ: ERIC) today announced the resolution of the previously disclosed investigations by the U.S. Department of Justice (DOJ) and the Securities and...

07/12/2019

Im A Celebrity...Get Me Out Of Here! Saturday 7 December preview (video)

Im A Celebrity...Get Me Out Of Here! Saturday 7 December preview (video) Jacqueline Jossa, Roman Kemp, Kate Garraway and Andy Whyment undertake tonights Bushtu...

07/12/2019

FUJINON Techno Stabi TS-X 1440 - high-end binoculars redefined

FUJINON Techno Stabi TS-X 1440 - high-end binoculars redefined A strong partner for highest demands with 14x magnification and the worlds most powerful image st...

07/12/2019

ITV launches brand new promo for Love Island

ITV launches brand new promo for Love Island [Friday 6 December] Tonight, ITV will premiere the brand new advertising promo for Love Island. The promo for th...

07/12/2019

Im A Celebrity...Get Me Out Of Here! Friday 6 December preview (video)

Im A Celebrity...Get Me Out Of Here! Friday 6 December preview (video) Roman Kemp and Andy Whyment undertake tonights Bushtucker Trial - Pump of Peril Im A Ce...

07/12/2019

UCLan cJAM - Attracting the talent of the future.

Posted on 06 Dec 2019 On Friday 22 November, our Creative Director, Simon Couchman, attended the UCLan cJAM: Media event at Lancaster Uni. Hosted by the Facul...

07/12/2019

Change in Magyar Telekom's top management

Change in Magyar Telekom's top management Budapest, December 6, 2019 08:00 Magyar Telekom announces that Chief Financial Officer J nos Szab will leave ...

07/12/2019

Magyar Telekom changes its management structure

Magyar Telekom changes its management structure Budapest, December 6, 2019 08:00 Magyar Telekom's Board of Directors decided to simplify its governance ...

07/12/2019

Hitachi to Provide CNAO with Proton Therapy System

Tokyo, December 6, 2019 --- Hitachi, Ltd. (TSE:6501, Hitachi ) today announced that it has entered into an agreement to provide Centro Nazionale di Adroterapia...

06/12/2019

Broadcast Film & Video: 2019 - The Year of Change!

Broadcast Film & Video: 2019 - The Year of Change! The advent of IP has driven significant change. No longer are people combing the marketplace for bespoke...

06/12/2019

NEP Announces the Appointment of Lise Heidal as SVP, Global Media Solutions to Lead Worldwide Initiative

NEP Announces the Appointment of Lise Heidal as SVP, Global Media Solutions to L...

06/12/2019

Sony and Verizon Demonstrate How 5G Stands to Transform Live Sports Production

Sony Imaging Products & Solutions Inc., Sony Mobile Communications Inc. and Verizon joined forces with NBC Sports to test how 5G can change the way live sports ...

06/12/2019

Best Wishes of the Season to All Our Customers!

December 2019 We would like to thank all our customers for their valued business in 2019 - this has been one of our busiest years! Our thanks also go to all ...

06/12/2019

All Things Being Equal highlights role of PSM in promoting gender equality

All Things Being Equal highlights role of PSM in promoting gender equality...

06/12/2019

Taking a holistic approach to fighting streaming piracy

The worldwide content distribution industry - from traditional cable, telco and satellite TV providers to the growing number of direct-to-consumer (DTC) players...

06/12/2019

Alchimie appoints head of UK operations

Follows Alchimies recent acquisition of TVPlayer Jenny Priestley 4 hours ago Follows Alchimie's recent acquisition of TVPlayer target=_blank title=...

06/12/2019

Netflix pledges more transparency on audience metrics

Head of original films Scott Stuber discusses measuring audience numbers Dan Meier 4 hours ago Head of original films Scott Stuber discusses measuring au...

06/12/2019

Broadcast Solutions looks back on successful Broadcast Innovation Day 2019 in Bingen, Germany

Broadcast Solutions looks back on successful Broadcast Innovation Day 2019 in Bi...

06/12/2019

Riedel Bolero and MediorNet Provide Comprehensive and Wide-Ranging Comms Solution for World-Renowned Winterthurer Musikfestwochen

Riedel Bolero and MediorNet Provide Comprehensive and Wide-Ranging Comms Solutio...

06/12/2019

EVS' Overcam Wins IABM's Peter Wayne Golden BAM Award

EVS Overcam Wins IABMs Peter Wayne Golden BAM Award posted: 05/12/2019 Judges say new AI-driven solution is promising for budget conscious live sports pro...

06/12/2019

Fox Corporation Announces Correction by FTSE Russell and Removal from Gambling Business Activity Exclusion List

New York, NY and Los Angeles, CA - December 5, 2019 Fox Corporation (Nasdaq: F...

05/12/2019

ENTERTAINMENT ONE WELCOMES COUNTRY ARTIST KALIE SHORR TO ITS PUBLISHING ROSTER

BACKENTERTAINMENT ONE WELCOMES COUNTRY ARTIST KALIE SHORR TO ITS PUBLISHING ROSTERDecember 5, 2019 - Entertainment One ( eOne ) is happy to announce an exclusiv...