# Ericsson to book $1.1 billion impairment on weaker outlook for Vonage
Published: 2024-07-04
Category: News
Category URL: https://tradingherald.com/category/news/
Meta Title: Ericsson to Book $1.1 Billion Impairment on Weaker Vonage...
Meta Description: Ericsson announces $1.1 billion noncash impairment charge in second quarter of 2024, citing lower market growth for Vonage portfolio. CEO Heuveldop addresses...
URL: https://tradingherald.com/ericsson-to-book-1-1-billion-impairment-on-weaker-outlook-for-vonage/

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### Ericsson to book $1.1 billion impairment on weaker outlook for Vonage

(Reuters) -Mobile telecoms equipment maker [Ericsson](https://tradingherald.com/telecom-equipment-maker-ericsson-divests-russian-operation/) said on Wednesday it will record a noncash impairment charge of 11.4 billion Swedish crowns ($1.09 billion) in the second quarter of 2024, the second writedown on its acquisition of Vonage.

The [impairment](https://tradingherald.com/ericsson-books-3-billion-impairment-says-q3-core-profit-fell-39/) charge reflects lower anticipated market growth in some of Vonage’s current portfolio, the company said in a statement.

The Swedish telecom gear maker bought cloud communication firm Vonage in 2022 for $6.2 billion.

“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,” Vonage Chief Executive Officer Niklas Heuveldop said.

We continue to advance our strategy to build a Global Network Platform for network application programming interfaces (APIs), which was the strategic impetus for the Vonage acquisition, he added.

This comes after Ericsson said in 2023 it recorded a 32 billion [Swedish](https://tradingherald.com/volvo-cars-q4-profit-lags-forecasts/) crown impairment charge related to the acquisition.

At the time of the deal, it was decided that Vonage would operate as an independent unit of [Ericsson.](https://tradingherald.com/telecom-equipment-maker-ericsson-divests-russian-operation/) Heuveldop was appointed new Head of Business Area Global Communications Platform and CEO of Vonage earlier this year.

($1 = 10.4934 Swedish crowns)

(Reporting by Devika Nair in Bengaluru; Editing by Alan Barona, Matthew Lewis and Sonali Paul)


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