Swedish tech giant, Ericsson, has posted a resilient set of figures for the first quarter of 2020, as demand for the company’s impressive portfolio of 5G products bolstered revenues.
Net sales were up 2 per cent on a year on year basis, to stand at $4.9 billion (49.8 billion SEK) and Ericsson also managed to boost its margins to a healthy 39.8 per cent.
With governments around the world deeming telecoms workers to be key or essential workers, most telcos are able to continue their 5G rollout plans, despite the considerable disruption caused by the current Covid 19 pandemic. This is good news for Ericsson, as demand for its products and services should continue, despite the global lockdown.
“We expect our industry to show resilience throughout the pandemic and we are well positioned with a competitive 5G product offering and cost structure. There is near-term uncertainty around sales volumes due to Covid-19 and the macroeconomic situation, but with current visibility we have no reason to change our financial targets for 2020 and 2022,” said Börje Ekholm, president and CEO of Ericsson.
Ericsson has made a number of key wins in Europe as operators look to limit the use of equipment produced by Chinese manufacturers. Earlier this month, Ericsson announced that it had been selected by BT to replace Huawei kit in its UK mobile network core, for 4G, non standalone 5G and ultimately standalone 5G. Ericsson will be hoping that similar decisions across Europe will open up more business potential for its next generation network equipment.