Ericsson profit beats expectations on 5G demand

Sweden’s Ericsson reported third-quarter core earnings above market estimates on Tuesday, as strong sales of 5G equipment in most of the world offset a loss of market share in mainland China.

The company’s quarterly adjusted operating earnings rose to 8.8 billion Swedish crowns ($1.02 billion) from 8.6 billion a year ago, beating the mean forecast of 7.85 billion, according to Refinitiv estimates.

While both Ericsson and its rival Nokia has benefited from the ban on China’s Huawei in several countries, the banning of the Chinese company in Sweden led to a loss contracts for the Swedish company in China.

Ericsson gets just under 10% of its revenue from China.

Sales in mainland China in Networks and Digital Services declined 3.6 billion crowns in the quarter.

Total revenue for the telecom equipment maker, a rival of Huawei and Nokia, fell 2% to 56.3 billion crowns, missing the 58.14 billion crowns seen by analysts.

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