Ericsson has unveiled its financial results and, although the world’s largest network equipment maker had reported a decline in sales in North America, Latin America’s sales increased 17% year-over-year and 23% sequentially, achieving US$ 781 million in the second quarter of 2011.
The results were driven by network expansions and new managed services contracts. Ericsson is delivering an HSPA+ dual carrier network in Chile for Entel. New contracts for revenue assurance, billing and charging and IPTV were also signed. According to the company, future growth will rely on IPTV, LTE and MVNOs. Ericsson pointed out that managed services remain a strong trend in the whole region, and noted the contract with Telefónica Brazil to provide managed services for field maintenance in Sao Paulo as an example.
Globally, Ericsson reported that net profit was up 66% to US$ 484.2 million for the quarter, although the rise in revenue and profit was weaker than expected on Wall Street. Revenues climbed 14% from the year-ago period to US$ 8.67 billion.
