Telecom equipment vendor Ericsson posted flat revenue growth in 2013 to $35.13 billion (SEK 227.4 billion). Its net income increased to SEK 12.2 million from SEK 5.9 million.
Ericsson said its fourth quarter revenue touched SEK 67 billion, showing flat growth from year-ago quarter to. Its Q4 net income improved to SEK 6.4 million from net loss of SEK 6.3 million.
In 2013, Ericsson said network business generated sales of SEK 117.7 billion (0 percent), global services SEK 97 billion (0 growth) and support services SEK 12.2 billion (-9 percent).
Ericsson said the Samsung agreement impacted sales by SEK 4.2 billion in the fourth quarter. Sales increased in China and Russia, while Networks sales in North America and overall sales in Japan declined. CDMA sales in North America, as well as GSM sales in China, continued to decline.
In 2013, sales were negatively impacted by strong currency headwind and lower sales in North East Asia, driven by lower GSM investments in China combined with lower project activity in Japan and South Korea. In North America the CDMA sales declined by 50 percent to SEK 4.2 (8.4) billion.
Hans Vestberg, president and CEO, Ericsson, said: “Our focus on profitability started to pay off and operating margin for the group gradually improved in 2013, despite significant currency headwind, driven primarily by improvements in networks and network rollout.”
Ericsson CEO said sales came under some pressure during the quarter. The major reason behind this development is the two large mobile broadband coverage projects, which peaked in North America in the first half of 2013 and the impact from reduced activity in Japan.