Ericsson reported its Q3 2024 financial results, showing mixed performance across its key market areas. Sales declined by 1% year-on-year (YoY), with a notable 55% growth in North America helping to offset declines in other regions. Total reported sales stood at SEK 61.8 billion, down from SEK 64.5 billion in the same quarter last year. Adjusted gross income rose to SEK 28.6 billion, driven by a significant improvement in network margins and increased patent revenues.
The company’s adjusted gross margin expanded to 46.3%, up from 39.2% in Q3 2023, benefiting from market mix, disciplined commercial strategies, and cost-saving measures. Adjusted EBITA reached SEK 7.8 billion, reflecting a 12.6% margin as cost reductions outweighed increased research and development (R&D) spending. Ericsson’s net income climbed to SEK 3.9 billion, a strong recovery from a net loss in the previous year.
Ericsson also highlighted progress in its strategic initiatives, including a joint venture (JV) with 12 global telecom operators to aggregate network APIs. The company expects intellectual property revenue to exceed SEK 13 billion by the end of 2024, following another 5G patent licensing deal signed in the third quarter.
• Sales: SEK 61.8 billion (YoY -1%)
• North American market growth: 55%
• Adjusted gross margin: 46.3%
• Adjusted EBITA: SEK 7.8 billion
• Net income: SEK 3.9 billion
• Free cash flow: SEK 12.9 billion
• New joint venture with 12 telecom operators for network APIs
• SEK 13 billion expected in IPR revenue for 2024
Ericsson CEO Börje Ekholm stated, “Q3 marks a period of laser-focus on execution of our strategic plan. We see increasing customer momentum around programmable networks that deliver differentiated performance, and expect further traction with our new joint venture for network APIs.”
