Telecom network equipment vendor Ericsson has reported that its revenues declined by nine per cent in the first quarter 2014 and stood at SEK 47.5 billion. Meanwhile, the company?s net income increased by 41 per cent to reach SEK 1.7 billion.
Further, Ericsson?s sales declined year-on-year, primarily in North America and Japan but these loses were partly offset by company?s encouraging performance in China, Middle East and Latin America.
Ericsson India
In the first quarter of 2014, the company?s revenues in the country increased by six per cent to reach SEK 1.7 billion. Ericsson?s sales in the region grew primarily due to network traffic growth in response to increasing smartphone penetration and data usage.
North America
The telecom equipment vendors? revenues declined by 23 per cent in North America and stood at SEK 12.2 billion. Ericsson has stated that lower mobile broadband coverage project activity resulted in networks sales decline as well as lower network rollout sales.
Latin America
Ericsson?s first quarter revenue from Latin America increased by eight per cent to SEK 3.9 billion. The company?s sales were driven by higher spending by operators in improving the quality of 3G services and significant investments in long term evolution networks by the operators in countries including Chile and Brazil.
Middle East
For the quarter under review, Ericsson?s revenue in the region increased by 22 per cent to SEK 3.9 billion. Sales grew primarily due to higher rollout of mobile broadband infrastructure projects in Iraq, Pakistan and Saudi Arabia. In the Middle East, Ericsson also witnessed continued demand for solutions focused on improving network performance quality and operational efficiencies.
