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Ericsson posts $1bn quarterly loss on Vonage write down ========== Swedish telecommunications equipment manufacturer Ericsson reported a $1.0 billion quarterly loss after writing down the value of its purchase of cloud-based communications operator Vonage. Ericsson acquired Vonage in 2022 for $6.2 billion, but already wrote down its value by $2.9 billion last year. Another write down of 11.4 billion Swedish kronor ($1.1 billion), mostly attributable to Vonage, was behind the 1.0 billion kronor loss in the second quarter. Ericsson's second quarter adjusted operating profit rose by 10 percent from the same period last year to 4.1 billion kronor. Sales, however, slid by 7 percent in the April-June period to 59.8 billion kronor, although they rose by 14 percent in the North American market. Ericsson CEO Borje Ekholm defended the acquisition, stating that Vonage remains foundational to build out a global platform for network APIs and drive future growth in the telecoms industry. Ekholm also noted that market growth slowing was the reason for the write down. Ericsson, along with Nokia and Huawei, dominates the market for 5G mobile network communications equipment, and the Vonage acquisition was aimed at diversifying into a growth market. Ericsson announced 1,200 job cuts in Sweden in March and has already announced 8,500 job cuts throughout last year to reduce costs. #Ericsson #Vonage #Telecommunications #QuarterlyLoss #WriteDown https://www.legit.ng/business-economy/economy/1601841-ericsson-posts-1bn-quarterly-loss-vonage-write-down/