Ericsson Updates Financial Outlook

In its annual investor conference, Ericsson said it remains strongly focussed on restructuring efforts and new growth opportunities. The company expects that the market for mobile infrastructure will decline 10 to 15 percent during 2016 and a further decline of 2 to 6 percent in 2017. This year, Ericsson has seen a lower pace of operator investments in Europe, while the US remains stable and China has continued at a high level.

“We are forcefully executing our strategy to drive incremental profit improvements through greater efficiency, monetizing our installed base in Networks and building new revenue base in IT & Cloud and Media. Current focus is on speed, efficiency and fine tuning of strategy execution,” stated Jan Frykhammar, President and CEO.

Some highlights

• A new company structure with three segments is now in place: Networks, IT & Cloud, and Media
• Networks: addressable market of USD100 billion in 2016, with -2 to 0% CAGR growth 2016-2018
• IT & Cloud: addressable market of USD100 billion in 2016, with 5 to 7% CAGR growth 2016-2018
• Media: addressable market of USD12 billion in 2016, with 9 to 11% CAGR growth 2016-2018
• Ericsson is seeing growing momentum in its partnership with Cisco

http://www.ericsson.com