Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| It is many contributing factors for us and it has been a great momentum actually |
| The time is now to seize on this opportunity, and we are very excited about our position |
| A few years back, we tested speed on demand with a push of a button and saw very strong interest from application developers |
| We've seen some good developments in other areas of the business that actually has started to grow and that's encouraging as well, but I would say the 5G core the future is ahead of us |
| While this takes time, we remain confident in our long-term plans and trajectory, and believe that Ericsson has a very exciting future ahead of us |
| The traction we have with customers is very strong today and the inbound interest we get from basically all operators are very exciting and I think positions as well for the future |
| The impairment testing on, it is the global network platform, which will provide ample growth opportunities in the future and position Ericsson to be a completely different company in a few years time |
| Our enterprise strategy and positive outlook on the global network platform remains unchanged, positive interactions with customers have further strengthened our belief in the area |
| But the factors that you point, of course, are the positive ones that could support gross margin |
| What excites me is that this is just the beginning of an extraordinary opportunity for our industry |
| I think it's important though to note that Q3 last year in 2022 was an absolute record quarter in North America with very large volumes of radios shipped and deployed |
| And with the actions we take when the market recovers, we will actually see significant operating leverage in the business |
| I would like to use this presentation to describe why we are excited about what we're creating with GMP and the value we believe it'll deliver to our shareholders |
| We're encouraged by the progress we're making and it's truly a testament to the strength of our team, our strategy, and the excellence of our products and our ability to execute |
| In a way, kind of just second to China today, very strong, have also a nationwide 5G stand alone network |
| Now we see that we can beat that as well and deliver 12 billion of saving |
| With network as a platform, every contributor in the ecosystem adds value to the whole basically creating a flywheel of exponential growth and innovation |
| But however, and I think this is important actually achieving 39.9% gross margin is a strong proof point, because it demonstrates the resiliency of our company |
| Third point, regarding EBITDA margin, we exceeded the previously mentioned expectations due to early positive effects of the cost out ambitions |
| Despite the uncertain macroeconomic backdrop, we continue to execute against our three key priorities, strengthen our leadership in mobile networks built upon technology leadership, grow our enterprise business and drive a continued cultural transformation |
| I'm very confident in our team and the work they do every day |
| Until then, we will continue to take actions that position Ericsson in the best way to create value, which with the market recovery of course will create good operating leverage |
| And this gives us good confidence, the recovery will come |
| We are talking about strict commercial discipline, improved software sales, accelerated service delivery automation, as some of the key pillars there |
| What was needed was instead and easy way to expose these advanced network capabilities, in this case, speed on demand, along with a strong developer community that actually can use the features to drive the next wave of innovation |
| I mean clearly, you seem to be seeing some positive impact from the restructuring in CSS and possibly in the networks business itself |
| This quarter, we were also proud to announce that, Vonage was recognized as a leader in 2023 Gartner Magic Quadrant for CpaaS |
| And 5G was actually designed to do just this, with advanced capabilities such as speed, ultralow latency, and the ability to offer differentiated quality of service |
| And if you do that, you will see a positive EBITDA number |
| So now with this track record, we're slightly ahead of our internal plans for cost out and as such, we have raised the ambition now by 1 billion to SEK12 billion of run rate savings until the end of the year |
| Statement |
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| So, on top line and group organic sales declined by 10%, and I would say, primarily driven by a 60% drop in North America in the networks business, where we continue to see operators adjust inventory |
| So in common with the rest of the industry, rising interest rates and changing demand trends have been headwinds to Vonage current core business and the impairment we took last week is simply a consequence of this |
| And as Borje outlined before, the telecom market outlook remains uncertain but is expected to recover to more normalized levels over time |
| There are, of course a slowdown in the market that we've seen for kind of the demand trends have been softer and we see a much higher interest rates as well |
| So, while near term dynamics are uncertain, our long-term confidence remain undiminished |
| So that's no doubt about that and those trends have come down |
| Fourth point, free cash flow, before M&A came in at SEK0.5 billion negative, and this we have also explained many times that this is really a result of this same business mix shift, which includes big rollout projects with a longer order to cash cycle |
| We just hit back to 2018 level and seen a significant growth decline |
| If you would only have a market where technology would not matter, you could actually slow down a bit of the investments, but that would make us uncompetitive in most parts of the world |
| And without the digital infrastructure in Europe, it is going to be a bit of a challenge |
| So, it is a challenge |
| So for the group, we came in at 7.3%, that's a decline, of course, versus last year's 11.3%, again, driven by the gross income in the networks |
| But overall, the rollout of 5G especially mid-band have been very, very slow and much slower than India |
| Personally, I worry a bit about Europe's future competitiveness |
| However, given that our customers are cautious on investments in a current uncertain market environment, we will not give guidance beyond Q4 of this year |
| So that year-over-year comparison is very tough, but nevertheless a 60% drop |
| So Q3 was in line with our previously indicated expectations, with a bit soft, the top-line in North America than we expected, but we bet the margins in the rest of the business |
| So the reason for a flat dish market for mobile infrastructure is really that the operator service revenues have only had very limited growth |
| You had said that the network rollout initial portion has lower margins, because of, and of course, higher cash intensity |
| These trends will not progress unless we fully leverage the mobile first, cloud first and AI first world |
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