Ericsson Reports 25% Drop in Q1 MEA Sales

While the company’s global sales grew by 10% YoY, sales in the Middle East and Africa declined.

This is according to the Ericsson first quarter results 2021, published by the company.

“Networks sales grew organically by 15%, despite a decline in IPR licensing revenues. This growth is reflecting continued high activity levels in all market areas, except in the Middle East and Africa.”

Börje Ekholm, President and CEO of Ericsson

Currency adjusted sales declined by -16% YoY. The company states that sales declined YoY in Networks and Digital Services primarily due to timing of 5G investments in the Middle East and uncertain macroeconomic conditions in Africa, which are likely to prevail for some time. Managed Services sales were stable. Reported sales decreased by -25%.

Digital Services shows good momentum in contract awards primarily in our cloud native 5G Core portfolio and continues to execute on the plan, visible in the gross margin2 increase to 43.6% (40.1%).

The ongoing global pandemic has fast-forwarded the digitalization of societies, placing a significant economic and social premium on high-quality network connectivity. A resilient global digital infrastructure is critical. We see positive signs of governments and enterprises increasingly recognizing 5G as a preferred choice for connectivity with accelerating deployment. 

Börje Ekholm, President and CEO of Ericsson

The company sees a strong momentum in the global 5G demand with lead markets moving forward at high pace, creating opportunities for Ericsson to grow its core business.

“To that end we continue to invest in further strengthening our portfolio and growing our global footprint. The Enterprise opportunity, on the back of 5G and IoT, offers another attractive growth area. With the investments we are making in our business in 2021, we are creating a strong platform for the long term with strengthened competitiveness in the core business as well as in Enterprise applications. ”

Börje Ekholm, President and CEO of Ericsson

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