Sunday, July 20, 2014

Ericsson's Q2 Sales Were Flat Y-o-Y

Ericsson reported sales of SEK 54.8b (US$8.01 billion), down -1% YoY and up 13% QoQ.

Sales in the quarter year-over-year were driven by growth in the Middle East, China and India, as well as continued capacity business in North America. This was offset by, as previously communicated, lower revenues from two large mobile broadband coverage projects in North America that peaked in the first half of 2013, and reduced activity in Japan.

Ericsson said it has started to deliver on  on previously awarded 4G/LTE contracts in Mainland China and Taiwan. The company also cited political unrest in parts of the Middle East and Africa as impacting sales, however the situation in Russia and the Ukraine did not impact sales in Q2.

Revenue by segment:

  • Networks: 29.0b, up 3% YoY
  • Global Services: 23.1b, down 7% YoY
  • Support Services: 2.8b, up 21%