Telefonaktiebolaget LM Ericsson (ERIC) Q2 2023 Earnings Call Transcript

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Peter Nyquist

Hello, everyone, and welcome to this call covering Ericsson's second quarter 2023. With me today, as usual, I have our President and CEO, Börje Ekholm; and our CFO, Carl Mellander.

As usual, we will start this with a presentation and end with a Q&A session. And then in order to ask questions, you need to join the conference by phone, remember that. Details can be found in today's press release and on our website, ericsson.com/investors. And please advise that today's conference is recorded.

But before handing over to Börje and Carl, I would like to read the following: during today's presentation, we will make forward-looking statements. These statements are based on our current expectations and certain planning assumptions, which are subject to risks and uncertainties. The actual results 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 the earnings report as well as in the annual report.

With that said, I would like to leave the word to you, Börje. So please, Börje.

Borje Ekholm

Thank you, Peter, and good morning, everyone. Big thank you all for joining us for this second quarter report. I'm happy to present a quarter where we continued to execute on our strategy to build a stronger and more profitable Ericsson for the long term. Based on our strategy and our strong position, we're able to deliver a solid quarter despite challenging market conditions. We see a changed business mix with North America representing one of the lowest shares we've seen in many years. But on the other hand, we see India growing very, very fast.

Our strategy, as you all know, is focused on 3 priorities: the first one to bolster our leadership in mobile networks; second is to grow our Enterprise business; and thirdly, drive a cultural transformation of the company.

Mobile networks continues to be the bedrock of Ericsson. With about half of the world's 5G traffic outside of China carried through our radios, we are a leader in the market, And we remain fully focused on continuing to strengthen this leadership position.

In parallel, we're using our expertise in advanced cellular networks to expand into the fast-growing enterprise market and that will substantially increase our addressable market, diversify our portfolio and puts us on a higher growth trajectory.