The Swedish telecom equipment supplier Ericsson announced two pieces of bad news on Wednesday evening.
On the one hand, he is writing off almost half of the purchase price for the US cloud specialist Vonage, which was acquired in 2022, at almost $3 billion. The Swedes justified the move with increased interest rates and a decline in Vonage’s business. The market capitalization of competitors has also fallen significantly. Ericsson spent $6.2 billion on Vonage last year. Despite the write-off, the Swedes want to hold on to the company.
On the other hand, sales fell significantly in the third quarter. Net sales fell by 10 percent to 64.5 billion Swedish crowns (5.6 billion euros), excluding additions and withdrawals as well as currency fluctuations. Network revenue fell by 16 percent to 41.5 billion crowns. In North America, revenues even fell by 60 percent due to reduced investments and inventory adjustments.
Ericsson shares came under pressure on the stock market. In an initial reaction, the securities traded in New York lost 3.5 percent.
STOCKHOLM (dpa-AFX)
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