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Earnings: Sony Ericsson Revenue Almost Doubles

Sony Ericsson has released its first quarter earnings showing a strong growth year-on-year. Revenues increased by 47 percent to 2.925 billion euros (US$3.980 billion) in the first quarter of 2007, from 1.992 billion euros (US$2.710 billion) for Q1 2006, reports EasyBourse. Net profit more than doubled to 254 million euros (US$346 million) from 109 million euros (US$148) a year ago. This reflects an increase in the number of handsets sold in the first quarter to 21.8 million from 13.3 million a year earlier — which means the handset manufacturers marketshare increased to more than 8 percent, compared to 6 percent a year ago. Although the company’s average selling price per handset fell by 10 percent to 134 euros (US$182) it managed to lift gross margins year-on-year to 30.3 percent from 26.3 percent with tight cost controls. The company will make a total payment of 848 million euros (US$1,154 million)to its parent corporations Sony and Ericsson through dividends, or dividend and capital redemption.

An interesting quote from the article: “Greger Johansson, an analyst at Redeye in Stockholm noted that neither Sony Ericsson or Nokia gained market share quarter-on-quarter, despite Motorola Inc (MOT) on Wednesday reporting a $181 million first quarter loss and seeing its market share drop.”

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