Ericsson Reports Significant Impairment Charge Due to Weak Vonage Performance

The Swedish telecommunications specialist Ericsson has warned investors that a non-cash impairment of 11.4 billion Swedish crowns (approximately 1.1 billion USD) will occur in the second quarter. These measures are a result of the deteriorating performance of Vonage Holdings, marking the second significant write-down of this asset within a year. The company stated in a notice on Wednesday evening that it was forced to reassess certain growth expectations. This decision was prompted by a deterioration in the market for the services offered. Consequently, Ericsson has also redirected its investments.