Ericsson reports third quarter results 2024
- Ericsson reported a 1% decline in sales year-over-year, with a notable 55% growth in North America, which offset declines in other regions.
- The company achieved a significant increase in adjusted gross income and gross margin, reflecting improved operational efficiency and commercial discipline.
- Despite the sales pressure in the Enterprise segment, the overall market shows signs of stabilization, particularly in North America.
On October 15, 2024, Ericsson released its third-quarter financial results, highlighting a mixed performance across different markets. The company reported a 1% decline in overall sales compared to the previous year, primarily due to challenges in most market areas, except for North America, which saw a remarkable 55% growth. This growth in North America is indicative of the region's recovery and increasing demand for advanced network solutions. The financial report also showcased a strong increase in adjusted gross income, which rose to SEK 28.6 billion, driven by a significant expansion in the adjusted gross margin to 48.7%. This improvement reflects Ericsson's focus on operational efficiency and commercial discipline, which have been crucial in navigating the competitive landscape of the telecommunications industry. Despite these positive indicators, the company anticipates continued sales pressure in the Enterprise segment as it shifts focus towards more profitable areas. The strategic partnership with 12 of the world's largest telecom operators is expected to enhance customer momentum around programmable networks, which are gaining traction in the market. Overall, the results demonstrate Ericsson's resilience and adaptability in a challenging environment, with signs of market stabilization, particularly in North America, suggesting a potential return to growth in the near future.