Ericsson announces non-cash impairment charge of SEK 11.4 billion | VanillaPlus

Ericsson announced that, in accordance with IFRS accounting requirements, it will record a non-cash impairment charge of 11.4 billion Swedish crowns in the second quarter of 2024, primarily reflecting lower anticipated market growth rates in Vonage’s current portfolio. The impact on after-tax net income will be 11.4 billion Swedish crowns and reported in the Enterprise segment.

Niklas Heuveldop, Vonage’s Global Communications Platform Lead and CEO, said: “Given the deteriorating market environment and the elective decisions we have made to refocus our investments in strategic priority areas, we have reassessed certain growth assumptions, resulting in a non-cash impairment charge of 11.4 billion Swedish crowns.”

He added: “We continue to advance our strategy to create a global network platform for network APIs, which was the strategic impetus for the Vonage acquisition. We recently announced additional partnerships with leading mobile network operators and see continued positive momentum across the industry. Through this strategy, we are making advanced 5G network capabilities available to the global developer community to accelerate innovation of value-added applications for industry and society. This will open new revenue streams for our operator customers and drive growth in the telecommunications industry.”

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