Bucking the trend in telecoms equipment sales, Ericsson reported a 5% year-on-year rise in revenues on a like-for-like basis in the first quarter to 49.6 billion Swedish krona (6.16 billion US dollars). Revenue in Ericsson's professional services business, which includes managing networks for operators, grew 10% year-on-year in constant currencies. However, net income fell 30% hit by losses at Sony-Ericsson.
"Investments in wireless networks largely continues, and rollouts of new networks and new technologies accelerate in markets such as the US, China and India," said Carl-Henric Svanberg, President and CEO of Ericsson.
Ericsson's sales are growing fastest in Asia-Pacific. The Stockhom-based company described the mobile broadband rollout in China as "the largest ever in the world and is being done in record time." It said that deliveries are also high to India, Indonesia and Vietnam, but cautioned that operators in Bangladesh and Pakistan are slowing investments due to the difficult local business environment.
Ericsson said that mobile subscriptions worldwide grew by 181 million in the first quarter to a total of 4.16 billion, while the number of WCDMA subscriptions grew by 27 million to 319 million. In 2008, Ericsson estimates fixed broadband connections grew by 18% year-over-year to close to 400 million. source: Ericsson statement