ERICY - ERICY STOCK NEWS

New research from Ericsson indicates that 5G uptake is positively correlating with revenue growth for communications service providers (CSPs) globally. In the 'Business Review' edition of the Ericsson Mobility Report, released on February 7, 2023, it was highlighted that the top 20 5G markets, representing 85% of global 5G subscriptions, have seen a significant increase in wireless service revenue since 2020. Early use cases for 5G, such as Enhanced Mobile Broadband and Fixed Wireless Access, are gaining traction, suggesting a promising outlook for CSPs.

Ericsson has appointed Jenny Lindqvist as Senior Vice President and Head of Market Area Europe & Latin America, effective February 1, 2023. She will be part of the Executive Team, reporting directly to the CEO, Börje Ekholm. Lindqvist aims to leverage her extensive experience in driving growth and innovation, particularly in the 5G sector. She succeeds Stefan Koetz, who has been in the role since June 1, 2022, and will now lead Strategic Projects for the same market area. Lindqvist previously held various leadership roles within Ericsson, contributing significantly to the business's success.

Ericsson has appointed Jenny Lindqvist as Senior Vice President and Head of Market Area Europe & Latin America, effective February 1, 2023. Lindqvist will join the Ericsson Executive Team, reporting to the CEO, Börje Ekholm. She previously served as Vice President and Head of Northern and Central Europe. Ekholm expressed confidence in Lindqvist's leadership during a critical time for Ericsson, focusing on enhancing the company’s position in 5G technology. Lindqvist, who holds a Master's in Business & Economics, replaces Stefan Koetz, who will lead Strategic Projects for the same market area.

Ericsson (NASDAQ: ERIC) announced a provision of SEK 2.3 billion (approximately USD 220 million) for potential resolution with the U.S. Department of Justice (DOJ) regarding alleged breaches of its 2019 Deferred Prosecution Agreement (DPA). This charge will be reflected in the fourth quarter 2022 financial results as Other Operating Expenses. The company is cooperating with ongoing investigations related to a prior internal investigation. No new criminal misconduct has been alleged by the DOJ since the DPA began.

Ericsson's Nomination Committee has announced a leadership change ahead of the Annual General Meeting on March 29, 2023. Chairman Ronnie Leten will not seek re-election, with current board member Jan Carlson proposed as his successor. Additionally, Kurt Jofs and Nora Denzel will not stand for re-election. Proposed board members include Christy Wyatt and Jonas Synnergren, who bring extensive technology and business expertise. The committee believes that these changes will enhance the board's capabilities, ensuring a smooth transition and continued strategic focus for Ericsson.

Ericsson is implementing a revised strategy for its Cloud Software and Services segment aimed at reaching break-even EBIT in 2023. Key changes involve exiting subscale agreements, which will negatively impact EBIT by SEK -0.8 billion in Q4 2022. The company is shifting its focus from market share growth to profitability. This strategic pivot comes ahead of its upcoming Q4 and full-year 2022 results announcement on January 20, 2023.

Ericsson has announced its exit from operations in Russia by divesting its local customer support business. An asset transfer agreement was established with a Russian company owned by former operational managers, involving approximately 40 employees and related assets. This move comes after Ericsson halted operations in Russia following the invasion of Ukraine, impacting around 400 employees. By the end of 2023, all customer engagements in Russia are expected to cease, though a legal entity will remain to handle administrative duties.

Ericsson (NASDAQ: ERIC) has extended its Independent Compliance Monitor's term by one year, now concluding in June 2024, to further enhance its governance and compliance practices. This follows a Deferred Prosecution Agreement with the U.S. DOJ and a Consent Judgment with the SEC from 2019, aimed at addressing FCPA violations. CEO Börje Ekholm emphasized the commitment to improving the company’s Ethics and Compliance program, while Chairman Ronnie Leten highlighted advancements in internal controls. This extension underscores Ericsson's dedication to integrity and robust compliance.