Ericsson Releases Q2 2024 Report

TL;DR

Ericsson dropped its Q2 2024 report today. Check financials.

AI Summary

LM Ericsson Telephone Company announced its second quarter 2024 report on July 12, 2024. The filing is a Form 6-K, indicating it's a report from a foreign issuer.

Why It Matters

This filing provides investors with key financial and operational updates for Ericsson's second quarter, impacting its stock performance and future outlook.

Risk Assessment

Risk Level: low — This is a routine quarterly earnings report filing, not indicating any unusual or immediate risks.

Key Players & Entities

• LM Ericsson Telephone Company (company) — Registrant
• July 12, 2024 (date) — Filing date and report announcement date
• 20240712 (date) — Conformed period of report
• SE-164 83, Stockholm, Sweden (location) — Principal executive offices address

FAQ

Filing Documents

• d778074d6k.htm (6-K) — 1907KB
• g778074dsp02.jpg (GRAPHIC) — 3KB
• 0001193125-24-178323.txt ( ) — 1912KB

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. T ELEFONAKTIEBOLAGET LM E RICSSON (publ) By: /s/ STELLA MEDLICOTT Stella Medlicott Senior Vice President, Chief Marketing and Communications Officer By: /s/ LARS SANDSTRÖM Lars Sandström Senior Vice President, Chief Financial Officer Date: July 12, 2024 Table of Contents Second quarter report 2024 Strategic highlights taking proactive action in a challenging market environment Delivering on network technology leadership strategy; externally recognized as 5G leader for 4 th consecutive year. Further progress to build out Global Network Platform for network APIs; two additional partnerships in Q2. New 5G patent licensing agreement signed; on track to deliver the SEK 12-13 b. IPR revenue target for 2024. Financial highlights strong gross margin expansion, partly offset by targeted R&D investments Sales declined -7%* YoY, but market area North America grew by 14%*. Reported sales were SEK 59.8 (64.4) b. Adjusted 1 gross income increased to SEK 26.3 (24.7) b. driven by strong gross margin expansion. Reported gross income was SEK 25.8 (24.1) b. Adjusted 1 gross margin was 43.9% (38.3%) supported by higher IPR licensing revenue and cost actions. Networks adjusted gross margin was 46.1% (39.3%). Reported gross margin was 43.1% (37.4%). Adjusted 1 EBITA was SEK 4.1 (3.7) b. with a 6.8% (5.7%) margin, with higher gross income partly offset by increased R&D investments in Networks for technology leadership. EBITA was SEK 2.4 (0.5) b. Net income (loss) was SEK -11.0 (-0.6) b., including a SEK -11.4 b. impairment impact. EPS diluted was SEK -3.34 (-0.21). Free cash flow before M&A was SEK 7.6 (-5.0) b. benefiting from a strong improvement in working capital. Börje Ekholm, President and CEO, said: In Q2, we maintained our

Financial statements and other information for Alternative performance measures

Financial statements and other information for Alternative performance measures. Group results SEK b. Q2 2024 Q2 2023 YoY change Q1 2024 QoQ change Jan-Jun 2024 Jan-Jun 2023 YoY change Net sales 59.8 64.4 -7 % 53.3 12 % 113.2 127.0 -11 % Organic sales growth ¹ -7 % -10 % Gross income 25.8 24.1 7 % 22.7 14 % 48.5 48.3 0 % Gross margin 43.1 % 37.4 % 42.5 % 42.8 % 38.0 % Research and development (R&D) expenses -14.9 -13.8 -11.6 -26.5 -25.7 Selling and administrative expenses -23.1 -10.6 -8.7 -31.8 -19.8 Impairment losses on trade receivables -0.1 -0.3 -0.3 -0.3 -0.4 Other operating income and expenses -1.3 0.3 2.0 0.7 0.3 132 % Share in earnings of JV´s and associated companies 0.0 0.1 -13 % 0.0 0.0 0.0 EBIT (loss) -13.5 -0.3 4.1 -9.4 2.7 EBIT margin ¹ -22.6 % -0.5 % 7.7 % -8.3 % 2.2 % EBITA ¹ 2.4 0.5 4.9 -50 % 7.3 4.4 67 % EBITA margin ¹ 4.1 % 0.8 % 9.2 % 6.5 % 3.5 % Financial income and expenses, net -0.4 -0.4 -0.5 -0.8 -1.3 Income tax 2.9 0.1 -1.0 1.9 -0.4 Net income (loss) -11.0 -0.6 2.6 -8.4 1.0 Restructuring charges -1.6 -3.1 -0.2 -1.8 -4.1 Adjusted financial measures ¹ Adjusted gross margin 43.9 % 38.3 % 42.7 % 43.4 % 39.0 % Adjusted EBIT (loss) -11.9 2.8 4.3 -7.6 6.8 Adjusted EBIT margin -19.9 % 4.4 % 8.1 % -6.7 % 5.4 % Adjusted EBIT excluding impairments ² 3.2 2.8 14 % 4.3 -25 % 7.5 6.8 10 % Adjusted EBIT margin excluding impairments ² 5.4 % 4.4 % 8.1 % 6.7 % 5.4 % Adjusted EBITA 4.1 3.7 10 % 5.1 -20 % 9.2 8.5 8 % Adjusted EBITA margin 6.8 % 5.7 % 9.6 % 8.1 % 6.7 % 1 Non-IFRS financial measures are reconciled at the end of this report to the most direct

View Full Filing

View this 6-K filing on SEC EDGAR