Swedish telecommunications equipment manufacturer Ericsson AB reported net losses in the second quarter of 2024 due to the write-off of assets of the American cloud service provider Vonage, acquired by the company in 2022, Interfax writes.
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According to Ericsson's press release, the net loss in the last quarter amounted to 11 billion Swedish kronor ($1.04 billion), compared with a loss of 597 million kronor for the same period the previous year. Earlier, company representatives reported that it would write down the value of Vonage's intangible assets by 11.4 billion crowns due to the slowdown in market growth for this business.
Analysts on average expected Ericsson to post a net profit of 1.2 billion kroner in the second quarter. The company's revenue in April-June decreased by 7% to 59.85 billion crowns, exceeding the market consensus at 58.58 billion crowns.
Revenue in the company's key mobile network equipment segment decreased by 11%. The division's sales in North America grew 20% as a number of large customers increased investments in networking equipment. Sales fell in other markets, including a 55% decline in the Southeast Asia-Oceania-India region, mainly due to a decline in investment in India.
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