Telefonaktiebolaget LM Ericsson (ERIC) Q2 2022 Earnings Call Transcript

For the period ending June 30, 2022

July 14, 2022 3:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Peter Nyquist

Hello and Bonjour [ph] everyone and welcome to today's presentation of Ericsson's second quarter result 2022. Together here in the studio, I have our CFO, Carl Mellander; and our CEO, Börje Ekholm. As usual, we will start this session with a presentation of around 20 minutes and then we will have the Q&A session. More details around that you will be able to find on our web page, ericsson.com/investors. I will start with this first.

During today's presentation, we will be making forward-looking statements. These statements are based on our current expectation and certain planning assumptions which are subject to risks and uncertainties. The actual result may differ materially due to factors mentioned in today's press release and discussed in this conference call. We encourage you to read about these risks and uncertainties in our earnings report as well as in our annual report.

With that said, I would like to start with giving the word to you, Börje. Please, Börje.

Börje Ekholm

Thank you, Peter and good morning, everyone and welcome to today's presentation. And a big thank you for joining us, of course. I'm pleased to present another quarter where we continue to see a strong business performance. We are growing driven by the global rollout of 5G networks as well as market share gains. Today, we have a 39% RAN market share and that's, of course, excluding Mainland China and that's up from 33% in 2017.

Today, 50% of the world's 5G traffic outside of China is carried over Ericsson Radio Networks and 80% of the top 20 operators in the world are using our 5G Core. Fundamental to our strategy is technology leadership. And since 2017, we have increased our investments in R&D significantly and we're committed to continuing this journey of innovation. This includes investments in our mobile infrastructure business but also developing a leading offering in the enterprise space.

In the quarter, we announced some changes to our structure and that will allow us to speed up and accelerate the execution of our strategy. With 5G, anything that can go wireless will go wireless. This puts Ericsson in a very good position as 5G is rolled out and transform every sector of the society. So now let me go through some of the key takeaways from the quarter. We see good business momentum and our underlying business is developing well. We continue to drive improvements through the introduction of new innovative solutions and continues to improve our underlying operation.