Ericsson Confirms Long-term EBITA Margin Target; To Exit Russian Operations

(RTTNews) - Ericsson (ERIC) Thursday announced that it is committed to reaching the lower end of the long-term target of 15-18 percent EBITA margin.

Separately, the company said it will exit Russian operations. The company said its wholly-owned Russian subsidiary has entered into an asset transfer agreement with a Russian company. The transaction includes approximately 40 Ericsson employees, assets, and contracts. The engagement in Russia is intended to be terminated by end of the year.

The company said it aims at generating a free cash flow before M&A of 9-12 percent of sales.

Overall RAN market is expected to be flat with growth of 11 percent p.a. in the 5G RAN market over the next 3 years.