Ericsson sees stronger demand for 5G equipment

The Swedish manufacturer of network equipment Ericsson is increasing its expectation for turnover in 2020. According to the company, the demand for super fast 5G internet equipment by telecom companies is stronger than expected and the benefits are being reaped.

For next year, Ericsson now assumes a turnover in a bandwidth of 230 billion to 250 billion crown, equivalent to 21 billion to 23 billion euros. Previously, sales were aimed at between 210 billion and 220 billion crowns. The target for an operating margin of more than 10 percent remains.

Ericsson achieved a turnover of crown 57.1 billion in the third quarter of this year. That is 6 percent more than a year earlier, helped by growth in North America and East Asia. The company suffered a net loss of 6.9 billion crowns. This is due to a provision of more than 1 billion euros due to an investigation by the American authorities into unauthorized payments for winning a contract in the 1990s.