Ericsson ended the quarter with a loss of $2.78 billion – Kommersant
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Swedish telecommunications company Ericsson completed the third quarter with a net loss of 30.5 billion kroner ($2.78 billion), according to its reporting. A year earlier, the company showed a profit of $492 million.
The company’s negative balance at the end of the third quarter is a consequence of the write-off of $2.9 billion associated with the depreciation of the American cloud operator Vonage, which Ericsson acquired in the middle of last year. Excluding this write-off, the Swedish company received a net profit of $127.5 million.
The company’s sales in the third quarter amounted to $5.88 billion, which is 5% worse than last year. At the same time, Ericsson management expects that the macroeconomic situation in the market will remain extremely unstable and unfavorable throughout both this and next year. Based on this, the company refused to give a long-term forecast for its operating results.
Ericsson shares are down more than 6% in Nasdaq over-the-counter trading. On the Stockholm Stock Exchange they sank by almost 8.5%.
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