Ericsson reported a resilient set of financials for Q1 2019, thanks to a strong performance in the US
Swedish network equipment provider, Ericsson, has posted revenues of SEK 48.9 billion ($5.27 billion) in the first quarter of 2019, an increase of 7 per cent on Q1 2017.
The company attributed its strong performance to increased revenues in the US and said that it was well positioned to reap the financial benefits of its investment in 5G over the next year.
Ericsson helped to rollout the first at-scale 5G network in Europe last week, when it partnered with Swisscom to launch its 5G services in Switzerland. Ericsson will be heavily involved in further 5G rollout’s in Europe, Asia and the US throughout 2019. While the company expects high start up costs to impact its bottom line in the short term, it believes that these launches will be significant cash spinners for them over the mid to long term.
“By end of 2019 we expect large-scale deployments of 5G to commence in parts of Asia. This will gradually impact short-term margins but strengthen our position in the long term,” said Ericsson’s president and CEO, Börje Ekholm.
“The 5G market is gaining momentum and we are well positioned to capture opportunities. We will continue to make substantial investments in R&D, especially in 5G, automation and AI. This is a key part of our focused strategy to strengthen our long-term business and path to reaching our targets for 2020 and 2022,” he said.