Ericsson Hints at Higher Shareholder Returns After Earnings Beat
By Dominic Chopping
STOCKHOLM--Ericsson suggested it could lift the shareholder payout this year as it reported a third-quarter earnings beat.
Continuing cost-saving efforts boosted profitability in the quarter while results also benefited from the $1 billion sale of its Iconectiv connectivity services business. The deal led to a capital gain of 7.6 billion Swedish kronor ($799.5 million).
"Solid recurring cash flow and the iconectiv sale contributed to a strong third quarter cash position, offering scope for increased shareholder distributions," Chief Executive Borje Ekholm said.
The Swedish telecommunications-equipment company said Tuesday that its key networks business posted an 11% fall in sales overall in the period, supported by sales growth in the Europe, Middle East and Africa and northeast Asia regions. The company also benefited from more sales of higher-margin services.
Networks sales in North America declined after last year saw a strong pace of deliveries from a large AT&T deal, while sales also declined in India. Latin America saw continued intense competition and lower customer network investments, it added.
Net profit attributable to shareholders in the third quarter came in at 11.15 billion kronor, above the 10 billion kronor expected in a FactSet analyst poll.
Sales fell 9% to 56.24 billion kronor, versus the 56.49 billion kronor FactSet estimate.
Write to Dominic Chopping at dominic.chopping@wsj.com
(END) Dow Jones Newswires
October 14, 2025 02:01 ET (06:01 GMT)
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