Everywhere up except Western Europe
Ericsson has posted full year profits of SEK33.3 billion, up 24% on 2004’s figures. Sales were up 15% on 2004, at SEK151.8 billion. The company attributed th growth to strong peformance in WCDMA/HSDPA and its services business. Despite these numbers market reaction was mixed as some commentators had projected maginally higher numbers.
“So far the company has installed 21 networks “with HSDPA capabilities”, Carl-Henric Svanberg, President and CEO, said.
“Convergence and next generation IP networks continue to be key development areas for the industry. The upgrade to fixed and mobile broadband is accelerating traffic in the world’s networks. The acquisition of Marconi is a strategic move to strengthen our position, both in terms of our offering for the growing transmission segment and in the development of next generation networks,” he added.
European performance
Western Europe sales were up 5% for the full year but declined by 4% compared to same quarter last year.
“Operator consolidation is ongoing,” Ericsson’s financial statement said, “which affects operator investments in the near term”. But at the same time, the company said this accelerates focus on total cost of ownership and drives growing demand for its managed services, an increasing focus for Ericsson.
“Tariff competition is intense and should generate traffic growth and a need for continued capacity investments. Increasing consumer demand for richer services drives accelerating 3G subscriber uptake and operator upgrades to HSDPA (High Speed Data Packet Access)” Ericsson’s market report concluded.
Eastern Europe, Middle East and Africa sales grew by 19% for the full year and by 22% compared to the same quarter last year. WCDMA/HSDPA deployments have started in certain parts of the region. “Operator consolidation is ongoing, led by regional as well as international players,” Ericsson said