Swedish telecoms giant Ericsson said yesterday its net profit soared in 2021, with a better-than-expected performance in the fourth quarter despite losing ground in the key Chinese market.
The world number two in telecom equipment is competing with Chinese Huawei in the global deployment of ultra-fast 5G mobile networks.
But Ericsson’s sales in China have taken a hit as it has faced retaliation there since Sweden banned Huawei and another Chinese firm, ZTE, from the European country’s 5G network in 2020 over security concerns. .
Despite the challenges, the Swedish company expects to reach its long-term profitability target sooner than expected.
“Our strategy of investing in technology leadership and increasing market share in our core business has supported strong financial performance in 2021 and delivered a strong fourth quarter for Ericsson overall,” said the CEO. Borje Ekholm in a statement.
Net profit jumped 30% last year to 23 billion crowns (2.2 billion euros).
Sales remained stable at 232.3 billion crowns in 2021.
Its profit jumped 41% in the fourth quarter to 10.1 billion crowns, while sales rose 3% to 71.3 billion crowns.
Analysts polled by Bloomberg had expected quarterly profit to fall to 7.1 billion crowns.
In mainland China, sales fell by 7.7 billion crowns last year, but Ericsson made up for those losses by gaining ground in other markets.
Independent journalism costs money. Support Times of Malta for the price of a coffee.