Sweden’s Ericsson back in the black in first quarter

Stockhom: Swedish telecommunications giant Ericsson returned to profit in the first quarter of 2019 and recorded higher sales in the period, notably in North America, the company said. The company reported quarterly net profit of 2.4 billion kronor ($260 million), compared with a net loss of 700 million kronor in the corresponding quarter of 2018. Ericsson said year-on-year sales in the quarter rose 13 per cent to 48.9 billion kronor, and were up 7 per cent when adjusted for currency effects and comparable units. “Growth was mainly driven by North America,” chief executive Borje Ekholm said in a statement. The company said it has secured 5G deals with 18 operators, including in South Korea and North America. Switzerland has released spectrum for 5G, Ekholm said, referring to the frequency bands used for mobile data. “The development in other parts of Europe is considerably slower,” he added, citing “lack of spectrum, poor investment climate and additional uncertainties related to future vendor market access.” Ericsson’s Chinese rival Huawei has been alleged by critics, particularly in the United States, of being too closely aligned with Beijing, raising security concerns. — dpa