Investing.com – Ericsson parts (st 🙂 spent 8% on Friday after Swedish Telecom Giant reports disappointing results per quarter, quoting badly from India as a factor cause.

The company’s renewed Ebita for the fourth quarter falls from the expected analysts at 8%, with weak enterprise and cloud performance. Software (ETR 🙂 & Service Divisions mixed with Indian market challenges.

India, a significant driver of growth for Ericsson in the previous quarters, sees its contribution to the total group from the group to be reduced to 4% of the Q4 from 8% last year.

This has occurred reduced despite the power growth of North American sales of 70% year-year, which is driven for network deployment.

However, North American strength is not enough to recover challenges elsewhere, especially in markets such as Europe and India, struggle with growth.

The company’s total income for the quarter arrived in line with the expected consensus, but the higher of the expected bonus payments forced the revised margins of the Ebita, which reduced 1.2 percent score compared to Consensus.

Gross margins show a moderate development, which is partially assisted by a chance of paying intellectual property, but operational efficiencies of supply chains are not enough to balance the weaker growth to sell many regions.

“Due to the new IPR Run rate, we estimate that IPR beat is about half of the higher IPR income and half the catch up fee,” said the analysts of Barclays (Lon 🙂 on a note.

Ericsson’s guidance for the first quarter of 2025 suggests continuous decomposition, with the expected seasonal reduction in income from Networks and Cloud Software & Services Divisions.

The company also shows that restructuring charges remain tall in the entire 2025, which is more weighing profits.

Barclays estimate a 13% downside risk of consensus EBITA for Q1 2025, which flames operating costs as a critical variable of financial view of the company.