Ericsson (ERICb.ST) on Wednesday announced a 32 billion Swedish crown ($2.9 billion) impairment charge related to its acquisition last year of Vonage, and said core profits fell in the third quarter as demand tumbled in North America.
A logo of Ericsson is seen outside the company's office in Kanata, Ontario, Canada April 17, 2023. REUTERS/Lars Hagberg/File Photo"The impairment is as consequence of the significant drop in the market capitalisation of Vonage's publicly traded peers, increased interest rates and overall slowdown in Vonage's core markets," it said in a statement.
Ericsson said a preliminary reading showed its operating profit before amortisation and restructuring and impairment charges fell 39% in the third quarter to 4.7 billion crowns. "Networks organic sales were down by 60% in North America year-on-year, with operators reducing their capex spend and adjusting inventories," it said.as a slowdown in consumer spending hit sales of telecommunications gear. In February, the group announced plans to cut 8,500 employees globally to reduce costs.
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