Ericsson has announces that, in accordance with IFRS accounting requirements, it will record a non-cash impairment charge of SEK 11.4 billion in the second quarter of 2024, primarily reflecting lower anticipated market growth rates in Vonage’s current portfolio. The Net income impact after tax will be SEK 11.4 billion and reported in segment Enterprise.
Niklas Heuveldop, the head of business area global communications platform and CEO of Vonage said, “Given deterioration in the market environment and elective decisions we have made to refocus our investments in strategically prioritised areas, we have reassessed certain growth assumptions, resulting in a non-cash impairment of SEK 11.4 billion.”
He adds: “We continue to advance our strategy to build a Global Network Platform for network APIs, which was the strategic impetus for the Vonage acquisition. We recently announced additional partnerships with leading mobile network operators and we see continued positive momentum across the industry. Through this strategy, we are making advanced 5G network capabilities available to the world’s developer community to accelerate the innovation of value-added applications for industry and society. This will open up new revenue streams for our operator customers and spur growth in the telecom industry.”
FOR FURTHER INFORMATION, PLEASE CONTACT
Contact person
Daniel Morris, Head of Investor Relations
Phone: +44 7386657217
E-mail: investor.relations@ericsson.com
