As Ericsson, the parent company of Ericcson NT published their H1 report, we are bringing you key takes from it.

According to it, in H1, the company recorded an increase in net sales of 11.3%, amounting to EUR 9.86bn. Meanwhile when solely observing Q2, net sales amounted to EUR 5.2bn (+10%).

Sales adjusted for comparable units and currency increased by 7% YoY, driven by growth in Networks, with strong sales growth in North America and in North East Asia. Digital Services sales adjusted for comparable units and currency declined by -3% YoY due to lower legacy product sales. Managed Services sales adjusted for comparable units and currency declined by -6% YoY, as a result of exited contracts. Sales adjusted for comparable units and currency in Emerging Business and Other increased by 24% YoY driven by growth in iconectiv.

Turning our attention to operating expenses, In Q2 R&D expenses decreased to SEK 0.9bn (-3% YoY). R&D expenses excluding restructuring charges increased by 2%, negatively impacted by currency effects. In H1, R&D expenses amounted to EUR 1.8bn (-1% YoY).  SG&A expenses in Q2 slightly decreased to EUR 0.7bn (-1 YoY). SG&A expenses excluding restructuring charges increased by 5% YoY, negatively impacted by costs for field trials and currency effects. Meanwhile, SG&A expenses in H1 amounted to EUR 1.2bn (-2% YoY).

Gross margin in H1 amounted to 37.5% (+3 p.p.). Gross margin excluding restructuring charges was flat at 36.7%

The company managed to turn operating loss from H1 in 2018 to an operating profit of EUR 0.8bn.

In H1 2019, net income amounted to EUR 0.4bn, compared to a net loss of in the same period last year of EUR -0.2bn.