Ericsson Q3 Net Income Grows 6%

Ericsson Q3 Net Income Grows 6%

Theindonesiatoday.com - Ericsson booked net profit of 3.8 billion Swedish kronor in the third quarter (Q3) of 2011, grew 6% from 3.6 billion in the same period of last year. Net sales increased 17% to 55.5 billion Swedish kronor from 47.5 billion a previous year.

For nine months to September of 2011, net income jumped 62% to 11.1 billion Swedish kronor while net sales rose 16% to 163.3 billion Swedish kronor.

"Group sales in the quarter increased by 17% year-over-year driven by a continued strong demand for mobile broadband as well as increased services revenues," says Hans Vestberg, President and CEO of Ericsson (Nasdaq: ERIC).

Segment Networks sales grew 25% year-over-year. The sequential decrease of -3% is due to seasonality and reduced CDMA sales in North America. All regions except North America, Northern Europe & Central Asia, Mediterranean and India showed sequential growth in Networks.

Segment Global Services sales grew 7% year-over-year and sequentially and Professional Services, currency adjusted, grew by 13% year-over-year. Managed services showed good development with increased sales of 12% sequentially, following 24 new managed services contracts reported in the second quarter.

Segment Multimedia sales grew 11% year-over-year and 8% sequentially, with good traction also this quarter for revenue management in Middle East and Sub- Saharan Africa.

The quarter was mixed for our joint ventures. Sony Ericsson reported increased sales and improved average selling price. ST-Ericsson's sales increased sequentially by 7% and revenues from new products continued to grow offsetting continuous decline in legacy products.

Increased global smart phone penetration, new devices and the introduction of tiered pricing is driving continued mobile data traffic growth. Mobile broadband subscriptions are expected to reach close to one billion by year-end and to reach close to five billion by 2016.

"We believe that the fundamentals for longer-term positive development for the industry remain solid. Ericsson is well positioned to drive and benefit from this development," concludes Vestberg. (Theindonesiatoday.com)

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