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Ericsson reports second quarter results 2024

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6 months ago

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STOCKHOLM, July 12, 2024 /PRNewswire/ —

Strategic highlights – taking proactive action in a challenging market environment 

Delivering on network technology leadership strategy; externally recognized as 5G leader for 4th consecutive year.  Further progress to build out Global Network Platform for network APIs; two additional partnerships in Q2.  New 5G patent licensing agreement signed; on track to deliver the SEK 12–13 b. IPR revenue target for 2024. 

Financial highlights – strong gross margin expansion, partly offset by targeted R&D investments   

Sales declined -7%* YoY, but market area North America grew by 14%*. Reported sales were SEK 59.8 (64.4) b.  Adjusted[1] gross income increased to SEK 26.3 (24.7) b. driven by strong gross margin expansion. Reported gross income was SEK 25.8 (24.1) b.  Adjusted[1] gross margin was 43.9% (38.3%) supported by higher IPR licensing revenue and cost actions. Networks adjusted gross margin was 46.1% (39.3%). Reported gross margin was 43.1% (37.4%).  Adjusted[1] EBITA was SEK 4.1 (3.7) b. with a 6.8% (5.7%) margin, with higher gross income partly offset by increased R&D investments in Networks for technology leadership. EBITA was SEK 2.4 (0.5) b.   Net income (loss) was SEK -11.0 (-0.6) b., including a SEK -11.4 b. impairment impact. EPS diluted was SEK -3.34 (-0.21).  Free cash flow before M&A was SEK 7.6 (-5.0) b. benefiting from a strong improvement in working capital. 

Börje Ekholm, President and CEO, said: “In Q2, we maintained our leading market position, returned to growth in North America, and delivered strong gross margin expansion and free cash flow. We remained focused on matters in our control, to optimize our business amid a challenging market environment, with industry investment levels unsustainably low.  

Vonage remains foundational to build out a global platform for network APIs. This is critical for the digitalization of enterprises and society, and will drive future growth in the telecoms industry. We recorded an impairment charge in Q2, as market growth in the current business has slowed, and we must now refocus on improving performance.  

Our results highlight our competitiveness, and we will continue to take proactive steps to position the business for longer-term success. We expect market conditions to remain challenging this year, as the pace of India investments slow, however our sales will benefit during the second half from contract deliveries in North America.” 

SEK b.

Q2

2024

Q2

2023

YoY

change

Q1

2024

QoQ

change

Jan-Jun

2024

Jan-Jun

2023

YoY

change

Net sales

59.848

64.444

-7 %

53.325

12 %

113.173

126.997

-11 %

 Organic sales growth[2] 

–

–

-7 %

–

–

–

–

-10 %

Gross margin[2] 

43.1 %

37.4 %

–

42.5 %

–

42.8 %

38.0 %

–

EBIT (loss) 

-13.519

-0.312

–

4.100

–

-9.419

2.734

–

EBIT margin[2] 

-22.6 %

-0.5 %

–

7.7 %

–

-8.3 %

2.2 %

–

EBITA[2] 

2.426

0.542

348 %

4.893

-50 %

7.319

4.390

67 %

EBITA margin[2] 

4.1 %

0.8 %

–

9.2 %

–

6.5 %

3.5 %

–

Net income (loss) 

-10.999

-0.597

–

2.613

–

-8.386

0.978

–

EPS diluted, SEK 

-3.34

-0.21

–

0.77

–

-2.57

0.25

–

Free cash flow before M&A 

7.595

-4.992

–

3.671

107 %

11.266

-13.008

–

Net cash, end of period 

13.133

1.892

–

10.807

22 %

13.133

1.892

–


Adjusted financial measures[2]

Adjusted gross margin 

43.9 %

38.3 %

–

42.7 %

–

43.4 %

39.0 %

–

Adjusted EBIT (loss) 

-11.891

2.821

–

4.305

–

-7.586

6.847

–

Adjusted EBIT margin 

-19.9 %

4.4 %

–

8.1 %

–

-6.7 %

5.4 %

–

Adjusted EBIT excluding impairments[3] 

3.229

2.821

14 %

4.305

-25 %

7.534

6.847

10 %

Adjusted EBIT margin excluding impairments[3] 

5.4 %

4.4 %

–

8.1 %

–

6.7 %

5.4 %

–

Adjusted EBITA 

4.054

3.675

10 %

5.10

-20 %

9.152

8.503

8 %

Adjusted EBITA margin 

6.8 %

5.7 %

–

9.6 %

–

8.1 %

6.7 %

–

*Sales adjusted for the impact of acquisitions and divestments and effects of foreign currency fluctuations. 

[1] Adjusted metrics are adjusted to exclude restructuring charges. This is a change in nomenclature only, compared with previous reports.

[2] Non-IFRS financial measures are reconciled at the end of this report to the most directly reconcilable line items in the financial statement.

[3] Excluding the non-cash impairment recorded in the second quarter 2024, relating to the impairment of intangible assets mainly attributed to the Vonage acquisition. 

 

NOTES TO EDITORS 

You find the complete report with tables in the attached PDF or on https://www.ericsson.com/en/investors/financial-reports/interim-reports

Video webcast for analysts, investors and journalists 

President and CEO Börje Ekholm and CFO Lars Sandström will comment on the report and take questions at a video webcast at 10:00 AM CEST (9:00 AM BST London, 4:00 AM EDT New York). 

Join the webcast or please go to www.ericsson.com/investors

To ask a question: Access dial-in information here

The webcast will be available on-demand after the event and can be viewed at www.ericsson.com/investors. 

FOR FURTHER INFORMATION, PLEASE CONTACT 

Contact person 
Daniel Morris, Head of Investor Relations
Phone: +44 7386657217 
E-mail: investor.relations@ericsson.com

Additional contacts 

Stella Medlicott, Senior Vice President, Marketing and Corporate Relations 
Phone: +46 730 95 65 39
E-mail: media.relations@ericsson.com

Investors
Lena Häggblom, Director, Investor Relations 
Phone: +46 72 593 27 78
E-mail:  lena.haggblom@ericsson.com
Alan Ganson, Director, Investor Relations
Phone: +46 70 267 27 30
E-mail: alan.ganson@ericsson.com

Media
Ralf Bagner, Head of Media Relations
Phone: +46 76 128 47 89
E-mail: ralf.bagner@ericsson.com

Media relations  
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com

This is information that Telefonaktiebolaget LM Ericsson is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, at 07:00 CEST on July 12, 2024. 

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2025 Consumer Texting Behavior Report: Consumers Demand SMS Notifications and Conversations

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40 minutes ago

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January 9, 2025

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Consumers embrace SMS Marketing like never before, with 86% opting in and expectations for instant, tailored communication soaring.

SAN FRANCISCO, Jan. 9, 2025 /PRNewswire/ — EZ Texting, the leading text marketing platform for businesses of all sizes, released the 2025 Consumer Texting Behavior Report today. Now in its fourth year, the report underscores a remarkable trend: with a staggering 98% open rate, SMS has evolved from a communication tool to the cornerstone of audience engagement, driving immediate and meaningful interactions.

EZ Texting’s 2025 Consumer Survey results reveal consumers embrace SMS marketing like never before, with 86% opting in.

“Consumers are clear about their preferences: they want businesses to communicate with them through SMS,” said Punit Shah, Co-Founder and Chief Marketing Officer. “From promotional offers to providing customer support, customers now prefer SMS for its speed, delivery, and convenience above all other forms of communication, including social and email. Businesses that react to this trend will find themselves with positive customer engagement, and those that don’t are at risk of missing customer needs. Texting is no longer just a nice-to-have, it is now a must-have communication channel.”

Consumers Expect Texting for Every Business Need

The 2025 report reveals growing consumer reliance on SMS for appointment reminders, promotional updates, and customer support. Among the most striking findings:

86% of consumers now opt in for business texts, a 20% increase since 2021.79% of consumers are more likely to purchase when subscribed, increasing 21% from 2024.52% of consumers text businesses more often, a 31% increase over 2023.

SMS Marketing Drives Action & Builds Loyalty

Consumers are increasingly turning to SMS as their go-to communication channel with brands. Highlights include:

71% of consumers subscribe to texts without needing a prior purchase.47% share feedback via SMS, rising from 35% in 2024.63% of consumers text more overall, with 52% texting businesses, compared to 31% last year.

Consumers Demand Speed & Personalization

Consumer expectations for responsiveness are higher than ever:

57% expect businesses to respond within 15 minutes.67% show increased interest in products after receiving a text, an increase of 21% from 2024.49% purchase more often after receiving a text, underscoring the power of timely communication.

Survey Methodology

EZ Texting conducted the 2025 Consumer Texting Behavior Report to analyze consumer attitudes and behaviors related to SMS marketing.

Survey Timeframe: Nov. 1–Nov. 15, 2024Participants: 1,074 qualified respondents with personal mobile phones

About EZ Texting
Since 2004, EZ Texting has provided 230,000+ growing businesses and organizations with an effortless way to start text marketing—and powerful features and integrations to keep conversations going.

CONTACT:
Marco Raye
Content Marketing Manager
Email: mraye@eztexting.com

Journalists & Media
pr@eztexting.com

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SOURCE EZ Texting

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Kotak Life launches ‘Kavya’: AI-powered HR Assistant aimed at enhancing Employee Engagement and Experience

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40 minutes ago

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January 9, 2025

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MUMBAI, India, Jan. 9, 2025 /PRNewswire/ — Kotak Mahindra Life Insurance Company Ltd (“Kotak Life”) has unveiled Kavya, an advanced HR virtual assistant powered by generative AI, designed to enhance employee experience and engagement.

Kavya serves as a trusted companion to Kotak Life’s strong workforce, ensuring that employees are heard confidentially while fostering open communication and connection throughout their professional journey. By engaging in meaningful conversations, Kavya aims to support individual growth and strengthen Kotak Life’s commitment to creating a progressive and supportive work environment.

Ruchira Bhardwaja, Chief Human Resources Officer, Kotak Mahindra Life Insurance Limited, said, “Kavya marks a pivotal moment in our commitment to employee development and satisfaction. With this AI-powered solution, we’re not just modernising HR services – we’re building a more empathetic, accessible and responsive workplace where every employee feels valued and heard.”

Key Features of Kavya 

Confidentiality: Kavya ensures that all interactions and shared information are kept strictly confidential, prioritising employee privacy at all times.Dedicated Support: For new joiners to seasoned professionals, Kavya is there at every milestone in the journey at Kotak Life, offering assistance and guidance.Action: Employees can share feedback and concerns with Kavya, who actively works to implement meaningful changes.Open Communication: Kavya encourages employees to communicate freely, without hesitation, providing a judgment-free space for open dialogue.

About Kotak Mahindra Life Insurance Company Ltd.

Kotak Mahindra Life Insurance Company Limited (Kotak Life) is a 100% owned subsidiary of Kotak Mahindra Bank Limited (Kotak). Kotak Life provides world-class insurance products with high customer empathy. Its product suite leverages the combined prowess of protection and long term savings. Kotak Life is one of the fastest growing insurance companies in India with 322 branches across 152 cities and has covered more than 5 crore active lives as on 31st December 2024.

For further information, please contact:
Shazin Motorwala, 
Kotak Mahindra Life Insurance Company Ltd.,
+91 98332 40021, 
Shazin.Motorwala@kotak.com

Jimit Harde,
Kotak Mahindra Bank,
+91 99300 29645,
Jimit.Harde@kotak.com

Meenakshi Verma, 
The Good Edge,
+91 99875 68227, 
meenakshi@thegoodedge.com

 

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FusionIQ Celebrates a Breakthrough Year in 2024, Wins Trifecta of Industry Awards

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40 minutes ago

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January 9, 2025

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Wealthtech provider also appoints Sloan Shanahan as Chief Revenue Officer to drive further growth and innovation

WOBURN, Mass., Jan. 9, 2025 /PRNewswire/ — FusionIQ, a leader in the delivery of cloud-based wealth management solutions, announced today that it achieved significant milestones in 2024, further establishing itself as a key innovator in wealthtech. This marks a pivotal moment in the company’s mission to make digital wealth transformation easy for financial advisors and institutions.

From industry awards to new partnerships and thought leadership to significant product advances, FusionIQ has emerged as a leader in the democratization of wealth as financial advisors and institutions look to fintechs to keep pace with the rapid acceleration of digital transformation in financial services.

Among the Notable Achievements in 2024:

Pre-Integrated Platforms: Leveraging the power of the cloud-native FusionIQ One platform, FusionIQ launched a suite of pre-integrated platforms to make digital wealth transformation easy, fast, and cost-effective for financial advisors and institutions. These platforms included FIQ Journey, the first dual journey platform for financial institutions integrating hybrid digital advice and self-directed investing in a single seamless investor experience, and the groundbreaking FIQ Wallet, the first digital wealth management solution for wallet companies, a significant leap forward in the convergence of wealth management and payment.Strategic Partnerships: The company announced key partnerships with leading financial institutions, including groundbreaking collaborations with OnPoint Community Credit Union and Kinecta Federal Credit Union, expanding access to digital investment services for OnPoint’s 581,000-plus members in Oregon and Southwest Washington, and Kinecta’s more than 270,000 members in California, New York, New Jersey, and Florida.Recognition in Banking Innovation: FusionIQ set the standard for innovation among wealthtech providers in 2024, winning Best-as-a-Service Solution for Wealth Management at the prestigious 2024 Banking Tech Awards USA in May, Best Wealth Management Solution by Vendor (Overall) at the Global BankTech Awards 2024 in September, and Best Digital Solution Provider – WealthTech – Personalization and User Experience at the Banking Tech Awards 2024 in December.SOC 2 Type II Compliance: FusionIQ successfully achieved SOC 2 Type II compliance, demonstrating its commitment to cybersecurity leadership and reinforcing trust with its growing client base.Thought Leadership: On topics ranging from cybersecurity to digital transformation in wealth management, FusionIQ advanced industry knowledge by contributing to 20 thought leadership articles, op-eds, and industry roundtables, establishing the company as a trusted voice in wealth management innovation.

With these achievements, FusionIQ continues to redefine the wealth management experience for institutions and investors across the industry.

Strengthening the C-Suite For Future Growth

In the second half of the year, FusionIQ made strategic leadership appointments to drive its continued growth trajectory. Eric Noll was appointed Chief Executive Officer after successfully completing a significant new fundraising round in October. That same month, Pete Chiccino was named Chief Operating Officer.

In December, Sloan Shanahan joined the executive team as Chief Revenue Officer (CRO), bringing a wealth of expertise in strategic partnerships, sales enablement, and market expansion. Ms. Shanahan has a proven track record of building and leading high-performing teams across top-tier consulting and technology organizations. Her vision aligns perfectly with FusionIQ’s goal of scaling operations and delivering innovative solutions to empower financial institutions in a rapidly evolving digital landscape.

“I’m thrilled to join FusionIQ at this pivotal time,” she said. “The company’s dedication to redefining wealth management through innovation and collaboration is inspiring. I look forward to working with the team to drive measurable business outcomes and forge enduring partnerships across the industry.”

Looking Ahead to 2025

Building on its momentum, FusionIQ is poised to accelerate its growth trajectory in 2025. With its strengthened leadership team and proven track record of success, FusionIQ is well-positioned to lead the next wave of digital transformation in wealth management.

About FusionIQ

FusionIQ makes it easy for financial advisors and institutions to be digital wealth leaders. The cloud-native all-in-one FusionIQ One platform has four modules – Hybrid Digital Advice, Self-Directed Investing, Digital Marketplace, and finTAMP – making digital transformation hassle-free. FusionIQ One powers a range of easy-to-implement products, including FIQ Freedom, FIQ Journey, FIQ Market One, FIQ TAMP+, and FIQ Wallet, making it easy for credit unions, banks, broker-dealers, family offices, RIAs, wallet providers, and asset managers to scale, delivering the digital experience clients and advisors want and the seamless workflows and process automations they need for organic growth. With white-label integrations complete in as little as six weeks, it’s easy to see why FusionIQ One’s integrated multi-custodian platform is quickly becoming the digital solution of choice for advisors and institutions. To learn more, please visit: https://fusioniq.io

Media Contact
Elizabeth Shim
Haven Tower Group
424 317 4861
eshim@haventower.com 

 

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SOURCE FusionIQ

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