ERICSSON on Tuesday (Oct 17) said it expected the uncertainty impacting its mobile networks business to persist into 2024, after reporting a fall in third-quarter revenue as demand for 5G equipment fell in North America.

The company, which pre-announced its results last week and took a US$2.9 billion impairment charge over its Vonage acquisition, said it expects current quarter results to be similar to the third quarter.

Networks organic sales in North America were down by 60 per cent from last year as telecom customers adjusted their inventory and were slower to roll out new equipment. North America now accounts for 23 per cent of Ericsson’s sales compared with 48 per cent earlier.

“While near-term dynamics are uncertain, we are convinced that the recovery will come,” CEO Borje Ekholm said.

“Our goal is to make Ericsson a more profitable company, returning to our cash flow target level and capturing the next major wave of networks innovation with a substantial platform business,” he added. REUTERS