Operating profit beats estimates on higher margins
Net sales fell 16 to 71.9 billion crowns, missing estimates
Could cut further costs this year, including layoffs CFO
Expects boost from ATT deal in second half of 2024

STOCKHOLM, Jan 23 Reuters Ericsson said it expects further decline in 5G gear demand from mobile operators this year including in key growth market India, after beating fourthquarter operating profit expectations on Tuesday helped by software sales.

Telecoms equipment suppliers are expecting a challenging 2024 as 5G equipment sales a key source of revenue are slowing in North America, while India, a high growth market, is also set for a slowdown.

We expect the current market uncertainties to prevail into 2024 with a further decline of the RAN Radio Access Network market outside China as our customers remain cautious and the investment pace is normalising in India, CEO Börje Ekholm said in a statement.

After a few years of high demand for 5G equipment, buying by telecom providers slowed last year, prompting firms such as Ericsson and Nokia to lay off thousands of employees to save costs.

The company could look at further cost cuts this year and that could potentially include layoffs, Chief Financial Officer Carl Mellander said in an interview.

He added the company has not yet identified a specific number of headcount or billions set to be taken out.

Operating profit EBIT excluding restructuring charges fell to 7.37 billion crowns from 8.08…