Ericsson announces SEK 11.4B charge for weak Vonage growth

Ericsson announced that it will record a non-cash impairment charge of SEK 11.4B in Q2, primarily reflecting lower anticipated market growth rates in Vonage’s current portfolio. The net income impact after tax will be SEK 11.4B and reported in segment Enterprise. Niklas Heuveldop, Head of Business Area Global Communications Platform and CEO of Vonage says: “Given deterioration in the market environment and elective decisions we have made to refocus our investments in strategically prioritized areas, we have reassessed certain growth assumptions, resulting in a non-cash impairment of SEK 11.4 billion.”