Mergers, Acquisitions and Financial Results

Ericsson’s South African subsidiary has achieved a year-onyear increase of 148% in sales, making it the star performer among Ericsson’s 25 global marketing units.In a traditionally quiet quarter, Ericsson had consolidated and extended its African presence despite stiff competition, said Jan Embro, the MD of Ericsson SA. The subsidiary has won new clients in Ghana, Uganda, Tanzania and Guinea Bissau, and although they are still new territories, market share and customer base are increasing steadily.

"We have worked hard to establish a presence throughout sub-Saharan Africa and our efforts are now bearing fruit," said Embro. Ericsson claims a 40% market share for wireless telecommunications equipment in the sub-Saharan region, with an estimated 13,2-million subscribers using cellular networks built on its equipment. Embro expects good results for the rest of the year, but believes the explosive growth of the first quarter will calm to a more stable upward trend."The two markets that will show the best growth in quarters two and three will be Nigeria and SA," Embro said.

Ericsson as a whole began this year by posting first-quarter results showing a return to profitability, with a net income of 3billion krone massively reversing its loss of 4,3-billion krone a year ago. Operating margin hit 16,1% and earnings a share of 0,19 krone reversed a loss of 0,27 krone.

Business Day