Ericsson Warns Against Huawei Ban, Despite Good Results

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Ericsson has had an excellent quarter. The ban from competitor Huawei and a lower cost structure provide the company with a good quarterly result, but that ban also contains risks.

Ericsson achieved a turnover of 69.6 billion kroner (about 6.87 billion euros) in the fourth quarter of 2020, which is 5 percent more than in the same period in 2019. The net profit is 7.2 billion kroner, 4.5 percent more than a year ago.

The Swedish network specialist says it currently has 127 commercial contracts and is active in 79 operational networks.

At the same time, it also announced that its operating margin is increasing. The targets set by the company for 2022 have already been achieved.

The company’s gross margin has increased from 36.8 percent to 40.6 percent. “Much of our R&D investments go not only to improve and more functions but also to the desire for the cost structure,” says CFO Carl Mellander to Reuters.

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