Telefonaktiebolaget LM Ericsson (publ) (NASDAQ:ERIC) Q2 2023 Earnings Call Transcript

Sandeep Deshpande: Yes. Just a quick follow-up on your Software and Services business. Where are we now in terms of the restructuring? I mean, you’ve taken some charges in the first half of the year. You’ve seen some improvements in terms of the earnings in that business. Have all the actions being taken and the results waiting to be seen? Or are there certain more results — I mean, are there certain more actions need to be taken in the second half to reach your goals there?

Carl Mellander: Yes. Sandeep, I can say, of course, actions are ongoing. We have exited from some subscale businesses, we talked about that before. We took some charges for that earlier. We are focusing on automating service delivery. We are taking out costs as part of the overall cost reduction effort. And we have commercial discipline to make sure that the new contracts are well scoped and well priced. And all of that is happening, of course, continuously. But we see clearly that breakeven, as we’ve had as a target or commitment for the year, is what we reach. And we say, as you saw, at least breakeven for 2023. Then, of course, 2024, we expect to see improved profitability coming out of all of these actions that the current leadership there in Cloud Software and Services are undertaking.

Peter Nyquist: Thank you, Sandeep. And thank you, Carl, and thank you, Börje. So we’re coming to the end to this Q&A session. So I would like to thank you all for the good questions. And for those who are going on summer vacation, I wish you all a nice vacation, and we’ll see each other again during autumn. So thank you, and goodbye.

Borje Ekholm: Thank you.

Carl Mellander: Thank you.