Changes in external reporting

Press release
Apr 22, 2010 06:00 (GMT +00:00)
  • Change in segments
  • Change in geographical break down
  • EBITA replaces EBITDA

As of January 1, 2010, Ericsson (NASDAQ:ERIC) will report the following segments: Networks, Global Services, Multimedia, Sony Ericsson and ST-Ericsson. The only change compared to previous years is that Network Rollout is now included in Global Services instead of Networks. All other segments are unchanged. With this change the external reporting is aligned with the new internal reporting structure.

As of January 1, 2010, the geographical reporting structure is changed. Instead of five geographical areas, ten regions will be reported which mirrors the new internal geographical organization. A part called "Other" will also be reported, consisting of business not reported in the geographical structure, e.g. embedded modules, cables, power modules as well as intellectual property rights and licenses.

In 2009, Ericsson reported top 15 countries. As of January 1, 2010, top five countries will be reported.

As of January 1, 2010, EBITA for segments will be reported. EBITA is defined as earnings before interest, tax, amortizations and write-downs of acquisition-related intangibles. Previous years, Ericsson has reported EBITDA. The shift to EBITA is done to better reflect the underlying business.

Numbers for 2009 have been restated accordingly.

The layout of the interim reports has been changed. As of the first quarter 2010, the first page of the report will not have bullets in the beginning. Instead, the first page will start with CEO comments, followed by the ordinary summary of key indicators.

Segments as of January 1, 2010:


Global Services

       Of which Network Rollout

       Of which Professional Services

                        Of which Managed Services


Sony Ericsson



Regions as of January 1, 2010:


North America

Latin America

North Europe and Central Asia

Western and Central Europe


Middle East

Sub-Saharan Africa


China and Northeast Asia

South East Asia and Oceania



Notes to editors:

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Ericsson is the world's leading provider of technology and services to telecom operators. Ericsson is the leader in 2G, 3G and 4G mobile technologies, and provides support for networks with over 2 billion subscribers and has the leading position in managed services. The company's portfolio comprises mobile and fixed network infrastructure, telecom services, software, broadband and multimedia solutions for operators, enterprises and the media industry. The Sony Ericsson and ST-Ericsson joint ventures provide consumers with feature-rich personal mobile devices. 

Ericsson is advancing its vision of being the "prime driver in an all-communicating world" through innovation, technology, and sustainable business solutions. Working in 175 countries, more than 80,000 employees generated revenue of SEK 206.5 billion (USD 27.1 billion) in 2009. Founded in 1876 with the headquarters in Stockholm, Sweden, Ericsson is listed on OMX NASDAQ, Stockholm and NASDAQ New York.



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Ericsson discloses the information provided herein pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on April 21 at 16.00 CET.