-
As announced in April 2016, Ericsson is changing
its reporting structure from the Q1 2017 earnings report with three
segments reported: Networks, IT & Cloud, and Media
-
Ericsson today discloses restated financials for
the new three segments, for each quarter of 2016 and for the full
year 2015. The restated financials are now available at
www.ericsson.com/investors
-
Conference call with CFO Carl Mellander for
analysts, investors and media starts at 14.00 CET, March 10,
2017
As previously announced, Ericsson (NASDAQ: ERIC)
will start to report financials according to new segments starting
from the first quarter 2017. The earnings report for the first
quarter will be published April 25, 2017. To facilitate
year-on-year comparisons, Ericsson today discloses the restated
financials for each quarter of 2016, and for the full year
2015.
The three segments reported are:
Networks - Products and
services with a focus on evolving and managing our customers'
telecom networks. The portfolio of radio networks and backhaul
solutions are based on industry standards and can also be
industrialized and adjusted to meet the demands of other industry
verticals such as utilities, transport, and public safety. In
addition, Ericsson services capabilities address operator demand in
an increasingly complex network environment.
IT & Cloud -
Products and services providing solutions for our customers'
digital transformation journeys across the Support Systems, Telecom
Core, and IT Cloud domains through a combination of products,
technology and expertise in networks, software, cloud, and business
processes.
Media - Products and
services that enable content owners, broadcasters, TV service
providers and network operators to efficiently deliver, manage and
monetize new TV experiences.
Financial disclosures for each segment
include:
Net Sales for segments Networks and IT & Cloud
includes a breakdown of sales into products and services.
There is no change in the regional structure. Net
sales will be reported in 10 geographical regions plus Region
Other. Broadcast services, previously reported in Region Other, is
now reported per geographical region. In addition, part of the
business related to former Telcordia has been transferred from the
geographic regions to Region Other.
Overview of restated financials:
Net sales, SEK b. |
FY2016 |
FY2015 |
Networks |
165.0 |
184.8 |
IT
& Cloud |
47.9 |
51.8 |
Media |
9.7 |
10.4 |
Total |
222.6 |
246.9 |
|
|
|
Operating income, SEK b. |
FY2016 |
FY2015 |
Networks |
15.8 |
26.8 |
IT
& Cloud |
-7.1 |
-3.9 |
Media |
-2.4 |
-1.2 |
Total |
6.3 |
21.8 |
|
|
|
Operating income, excl.
restructuring, SEK b. |
FY2016 |
FY2015 |
Networks |
19.7 |
29.9 |
IT
& Cloud |
-4.0 |
-2.0 |
Media |
-1.8 |
-1.0 |
Total |
13.9 |
26.8 |
Ericsson presented indications of 2015 financial
performance by segment at the Investor Update in New York on
November 10, 2016. The final restated financials for 2015 show a
higher net sales and operating margin for segment Networks while
the net sales and operating margin for segment IT & Cloud are
lower.
Two factors explain this change:
-
Following final decisions on common cost
allocation principles, a higher share of such costs, previously in
Networks, is now reported as part of IT & Cloud.
-
Following clarified accountability for customer
support, a higher share of customer support revenues, previously in
IT & Cloud, is now reported as part of
Networks.
2015 operating margin for segment Media is in line
with what was presented at the Investor Update.
Find the complete tables of restated financials
at www.ericsson.com/investors
CONFERENCE CALL FOR ANALYSTS,
INVESTORS AND JOURNALISTS
A conference call for financial analysts,
investors and journalists will begin at 14:00 CET on March 10.
CFO Carl Mellander will comment on the restated
financials and take questions. To join the conference call, please
call one of the following numbers:
SE Toll Number: +46856642694 (Toll-Free Sweden:
0200883817)
International/UK Toll Number: +442030089801
(Toll-Free UK: 08082370059)
US Toll Number: +16465025116 (Toll-Free US:
+18558315945)
Please call in at least 15 minutes before the
conference call begins. As there is usually a large number of
callers, it may take some time before you are connected.
A live audio webcast of the conference call will
be available at: www.ericsson.com/investors and at:
www.ericsson.com/press
REPLAY:
A replay of the conference call will be available
from about one hour after it has ended until March 16, 2017.
Sweden replay number: +46 8 5664 2638
International replay number: +44 20 3426 2807
Conference Number: 683534#
FOR FURTHER INFORMATION, PLEASE CONTACT
Contact person
Peter Nyquist, Head of Investor
Relations
Phone: +46 10 714 64 49
E-mail: peter.nyquist@ericsson.com
Investors
Åsa Konnbjer, Director, Investor
Relations
Phone: +46 10 713 39 28
E-mail: asa.konnbjer@ericsson.com
Stefan Jelvin, Director, Investor
Relations
Phone: +46 10 714 20 39
E-mail: stefan.jelvin@ericsson.com
Rikard Tunedal, Director, Investor
Relations
Phone: +46 10 714 54 00
E-mail: rikard.tunedal@ericsson.com
Media
Ola Rembe, Vice President, Head of External
Communications
Phone: +46 10 719 97 27
E-mail: media.relations@ericsson.com
Corporate Communications
Phone: +46 10 719 69 92
E-mail: media.relations@ericsson.com
Ericsson reports restated
financials for 2015 and 2016
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Ericsson via Globenewswire
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