- Ericsson ( NASDAQ: ERIC ) is taking action to accelerate profitability in its cloud software and services segment, with a goal of breaking even on EBIT/EBITA level in full-year 2023 .
- As outlined at the recent Capital Markets Day, the telecoms firms plans to limit subscale software development, drive automation to lower deployment and maintenance efforts and change focus from market share gains to profitable business.
- Following a portfolio and customer contract review, it has decided to exit certain subscale agreements and product offerings, with a one-off negative impact on EBIT of SEK -0.8B in Q4 2022, of which SEK -0.7B is expected to impact cash flow, mainly in 2023.
- The company is scheduled to report its fourth quarter results on Jan. 20.
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Ericsson takes steps to drive profitability in cloud services