STOCKHOLM, July 12, 2024 /PRNewswire/ --
Strategic highlights – taking proactive action in a challenging market environment
Financial highlights – strong gross margin expansion, partly offset by targeted R&D investments
Börje Ekholm, President and CEO, said: "In Q2, we maintained our leading market position, returned to growth in North America, and delivered strong gross margin expansion and free cash flow. We remained focused on matters in our control, to optimize our business amid a challenging market environment, with industry investment levels unsustainably low.
Vonage remains foundational to build out a global platform for network APIs. This is critical for the digitalization of enterprises and society, and will drive future growth in the telecoms industry. We recorded an impairment charge in Q2, as market growth in the current business has slowed, and we must now refocus on improving performance.
Our results highlight our competitiveness, and we will continue to take proactive steps to position the business for longer-term success. We expect market conditions to remain challenging this year, as the pace of India investments slow, however our sales will benefit during the second half from contract deliveries in North America."
SEK b. |
Q2 2024 |
Q2 2023 |
YoY change |
Q1 2024 |
QoQ change |
Jan-Jun 2024 |
Jan-Jun 2023 |
YoY change |
Net sales |
59.848 |
64.444 |
-7 % |
53.325 |
12 % |
113.173 |
126.997 |
-11 % |
Organic sales growth[2] |
- |
- |
-7 % |
- |
- |
- |
- |
-10 % |
Gross margin[2] |
43.1 % |
37.4 % |
- |
42.5 % |
- |
42.8 % |
38.0 % |
- |
EBIT (loss) |
-13.519 |
-0.312 |
- |
4.100 |
- |
-9.419 |
2.734 |
- |
EBIT margin[2] |
-22.6 % |
-0.5 % |
- |
7.7 % |
- |
-8.3 % |
2.2 % |
- |
EBITA[2] |
2.426 |
0.542 |
348 % |
4.893 |
-50 % |
7.319 |
4.390 |
67 % |
EBITA margin[2] |
4.1 % |
0.8 % |
- |
9.2 % |
- |
6.5 % |
3.5 % |
- |
Net income (loss) |
-10.999 |
-0.597 |
- |
2.613 |
- |
-8.386 |
0.978 |
- |
EPS diluted, SEK |
-3.34 |
-0.21 |
- |
0.77 |
- |
-2.57 |
0.25 |
- |
Free cash flow before M&A |
7.595 |
-4.992 |
- |
3.671 |
107 % |
11.266 |
-13.008 |
- |
Net cash, end of period |
13.133 |
1.892 |
- |
10.807 |
22 % |
13.133 |
1.892 |
- |
|
||||||||
Adjusted gross margin |
43.9 % |
38.3 % |
- |
42.7 % |
- |
43.4 % |
39.0 % |
- |
Adjusted EBIT (loss) |
-11.891 |
2.821 |
- |
4.305 |
- |
-7.586 |
6.847 |
- |
Adjusted EBIT margin |
-19.9 % |
4.4 % |
- |
8.1 % |
- |
-6.7 % |
5.4 % |
- |
Adjusted EBIT excluding impairments[3] |
3.229 |
2.821 |
14 % |
4.305 |
-25 % |
7.534 |
6.847 |
10 % |
Adjusted EBIT margin excluding impairments[3] |
5.4 % |
4.4 % |
- |
8.1 % |
- |
6.7 % |
5.4 % |
- |
Adjusted EBITA |
4.054 |
3.675 |
10 % |
5.10 |
-20 % |
9.152 |
8.503 |
8 % |
Adjusted EBITA margin |
6.8 % |
5.7 % |
- |
9.6 % |
- |
8.1 % |
6.7 % |
- |
*Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. [1] Adjusted metrics are adjusted to exclude restructuring charges. This is a change in nomenclature only, compared with previous reports. [2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement. [3] Excluding the non-cash impairment recorded in the second quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition. |
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NOTES TO EDITORS
You find the complete report with tables in the attached PDF or on https://www.ericsson.com/en/investors/financial-reports/interim-reports
Video webcast for analysts, investors and journalists
President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a video webcast at 10:00 AM CEST (9:00 AM BST London, 4:00 AM EDT New York).
Join the webcast or please go to www.ericsson.com/investors
To ask a question: Access dial-in information here
The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors.
FOR FURTHER INFORMATION, PLEASE CONTACT
Contact person
Daniel Morris, Head of Investor Relations
Phone: +44 7386657217
E-mail: investor.relations@ericsson.com
Additional contacts
Stella Medlicott, Senior Vice President, Marketing and Corporate Relations
Phone: +46 730 95 65 39
E-mail: media.relations@ericsson.com
Investors
Lena Häggblom, Director, Investor Relations
Phone: +46 72 593 27 78
E-mail: lena.haggblom@ericsson.com
Alan Ganson, Director, Investor Relations
Phone: +46 70 267 27 30
E-mail: alan.ganson@ericsson.com
Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com
Media relations
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on July 12, 2024.
