Telefonaktiebolaget LM Ericsson (publ) (ERIC)
After hours:
| Previous Close | 6.20 |
| Open | 6.24 |
| Bid | 0.00 x 0 |
| Ask | 0.00 x 0 |
| Day's Range | 6.18 - 6.27 |
| 52 Week Range | 4.33 - 6.36 |
| Volume | |
| Avg. Volume | 15,837,329 |
| Market Cap | 20.811B |
| Beta (5Y Monthly) | 0.40 |
| PE Ratio (TTM) | N/A |
| EPS (TTM) | -0.72 |
| Earnings Date | Jul 12, 2024 |
| Forward Dividend & Yield | 0.25 (4.03%) |
| Ex-Dividend Date | Apr 04, 2024 |
| 1y Target Est | 4.55 |
ReutersEricsson shares fall after another $1 billion Vonage impairment charge
Telecom equipment maker Ericsson has recorded another billion-dollar impairment charge for its acquisition of cloud communications firm Vonage in 2021, sending its shares down 2% in early trade. Dubbed as one of its largest deals in history, Ericsson splurged $6.2 billion in cash to buy Vonage to help it target enterprise customers as it sought to diversify away from its mobile networks business. Since then, mobile network revenue has fallen due to lower demand for 5G gear, Ericsson's share price has halved over an Iraq bribing scandal, and it took a $3 billion non-cash charge last year on the Vonage deal.
PR NewswireEricsson announces non-cash impairment charge mainly relating to Vonage
Ericsson (NASDAQ: ERIC) today 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.
ReutersEricsson to book $1.1 billion impairment on weaker outlook for Vonage
The impairment charge reflects lower anticipated market growth in some of Vonage’s current portfolio, the company said in a statement. The Swedish telecom gear maker bought cloud communication firm Vonage in 2022 for $6.2 billion. "Given deterioration in the market environment and elective decisions we have made to refocus our investments in strategically prioritized areas, we have reassessed certain growth assumptions," Vonage Chief Executive Officer Niklas Heuveldop said.
