Ericsson shares volatile after results, $2.9 billion charge

(Reuters) – Ericsson (BS:) shares were volatile early on Thursday, defying indications for a sharp fall after the Swedish telecom gear maker overnight announced a $2.9 billion impairment related to its acquisition of Vonage last year.

Traders said investors were focusing on the company’s operational results which were in line with market expectations.

Ericsson reported a preliminary third-quarter operating profit before amortisation, restructuring and impairment charges of 4.7 billion Swedish crowns ($431 million), down 39%.

Ericsson shares were down 0.4% at 0733 GMT, having traded between a rise of 2.2% and a fall of 2.4% on the day. The stock has lost around 13% in 2023.

($1 = 10.9010 Swedish crowns)