Ericsson Reports Double-Digit Revenue Drop in 1Q24

In the first quarter of 2024, Ericsson reported sales of SEK53.3 billion ($4.9 billion), a 14.9% YoY drop. Networks were a main contributor to the decline, with sales from the unit falling 19%. Net income increased 66% in the period to SEK2.6 billion.

Looking ahead, the company said it was expecting the downturn to continue until the end of the year, mainly due to continued low operator spending as well as the investment pace in India continuing to normalize. Notably, it also stated a recent forecast by research company Dell’Oro estimating the global RAN market to decline by 4% in 2024 may prove optimistic.

“In Q1, we continued to execute our strategy to strengthen our leadership in mobile networks, drive a focused expansion in the enterprise, and pursue cultural transformation,“ said Börje Ekholm, President and CEO of Ericsson. “We maintained our leading market position, but as expected our customers continued to exercise caution with their investments. Against this tough market backdrop, we delivered solid expansion in gross margins. We will continue to proactively optimize the business, including through strategic cost-saving measures, to ensure Ericsson is best positioned to increase shareholder value.“