Ericsson Q4 Results Rise, Hikes Dividend; But Stock Down

Telefon AB L.M.Ericsson

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(RTTNews) - Swedish telecom major LM Ericsson reported Friday higher fourth- quarter earnings and sales, with significant growth in North America, despite weak results in Asia, particularly India. Further, the company lifted quarterly dividend.

Meanwhile, the shares were losing around 9 percent in Sweden as well as in pre-market activity on the Nasdaq.

Börje Ekholm, President and CEO, said, "We see further signs that the overall RAN market is now stabilizing… . We are not yet at our long-term EBITA goal, but we are progressing towards it, supported by our strategic actions. For 2025, in Networks we will continue to benefit from our product leadership position, with the best performance and energy efficiency in the industry."

Further, the company announced that a dividend for 2024 of 2.85 Swedish kronor per share, higher than last year's 2.70 kronor per share, will be proposed to the AGM by the Board of Directors.

For the fourth quarter, net income climbed 43% to 4.88 billion Kronor from last year's 3.41 billion Kronor.

Earnings per share grew 41% to 1.44 Kronor from 1.02 Kronor a year earlier.

EBITA was 8.62 billion Kronor, 29% higher than 6.69 billion kronor last year. Adjusted EBITA was 10.24 billion kronor, 25% higher than prior year's 8.21 billion kronor. Adjusted EBITA margin improved to 14.1% from prior year's 11.4%.

Sales grew 1% to 72.91 billion kronor from prior year's 71.88 billion kronor.

Sales increased 2% organically, with 54% growth in market area North America.

Market area Europe and Latin America also grew, while the other market areas declined significantly.

South East Asia, Oceania and India sales fell 28 percent on a reported basis, and the drop was 22% in North East Asia, and 19 percent in Middle East and Africa.

Networks sales grew 4% to 46.8 billion kronor. Cloud Software and Services sales declined 1%.

In pre-market activity on the Nasdaq, Ericsson shares were losing around 9.4 percent to trade at $8.06

In Stockholm, the shares were trading at 88.08 kronor, down 9.8 percent.

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