Ericsson To Exit Certain Product Offerings In Line With Revised Strategy In Cloud Software Segment

(RTTNews) - Ericsson (ERIC) has decided to exit certain subscale agreements and product offerings, with a one-off negative impact on EBIT of 0.8 billion Swedish kronor in fourth quarter 2022, of which 0.7 billion kronor is expected to impact cash flow, mainly in 2023. The company's fourth quarter and full-year 2022 results will be published January 20.

Ericsson said, with the revised Cloud Software and Services strategy, it is laying the foundation to turn the segment around. The target is to reach break-even in full-year 2023 on EBIT/EBITA level with gradual improvements towards long-term attractive profitability, Ericsson stated.