Ericsson warns of possible impairment in digital services and media business
Stockholm — Ericsson said on Friday it may have to book a goodwill impairment in its struggling digital services and media businesses, potentially hitting the Swedish mobile network equipment maker’s operating income but not its cash flow. Once the world’s biggest manufacturer of mobile network gear, Ericsson has been hit by competition from Huawei and Nokia, while spending by telecoms operators has slumped ahead of the roll-out of next-generation 5G technology. Ericsson, which has cut costs and reorganised in response, said a restatement of its financials to reflect its new structure had uncovered the potential need for impairments. "If it turns out that we make an impairment of goodwill, we want to stress that it would not be due to the business in the (fourth) quarter but rather due to accounting matters," chief financial officer Carl Mellander said. Ericsson said it would announce the outcome of its goodwill review before it publishes its fourth-quarter report. The digital servi...
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