India, a high growth market for Ericsson

India,-a-high-growth-market-for-EricssonFor Ericsson, India is a high growth market in 2014. India as a region has shown highest growth and has grown by 20 percent in the fourth quarter, 2014 vis-a-vis fourth quarter, 2013 to reach SEK 2.4 billion.

The fourth quarter of 2014 is also the highest revenue quarter for Ericsson India in the last 8 quarters as it has registered a revenue of SEK 2.362 billion.

Sales increased year-on-year mainly due to higher operator spending driven by continued growth in mobile data traffic. Full-year sales growth was driven by mobile broadband infrastructure investments. Increased smartphone penetration drove growth in mobile data usage.

 

Ericsson India Q4 Sales (in SEK mn)
Networks – 1,198
Global Services – 987
Support Solutions – 177
Total – 2,362
Source: Ericsson

Other markets which have done considerably well in the fourth quarter but has shown lower growth than India for Ericsson include: Western and Central Europe at 17 percent, Middle East and South East Asia & Oceania at 16 percent each and Northern Europe & Central Asia at 11 percent.

India has also done well on full year revenue, reaching SEK 7.7 billion, an increase of 25 percent. Other countries/regions which have performed better but lower growth than India in 2014 include: Middle East at 22 percent; Western and Central Europe at 7 percent and Northern Europe and Central Asia at 6 percent.

Ericsson India 2014 Sales (in SEK mn)
Networks – 4,079
Global Services – 3,139
Support Solutions – 484
Total – 7,702
Source: Ericsson

Mobile broadband sales increased both year-on-year and quarter-on-quarter thanks to orders in mainland China, Taiwan, Japan, India and parts of Europe as Ericsson continued to deliver on previously communicated key contracts. In mainland China the majority of the business in the quarter was related to the continued LTE deployments.

Global Services showed stable growth with momentum for professional services driven by managed services and systems integration sales. During the quarter, 17 new managed services contracts were signed, including a pan-India contract with Reliance Communications.

In 2014, Ericson India has added 2,349 employees to take the overall tally to 19,971 by end-2014 and is the highest employee region after Northern Europe and Central Asia.

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