Spotify’s business model is an unfinished symphony 25 Aug 2017 The streaming service is closer to an IPO after sealing deals with music labels like Warner. But Spotify’s ability to turn a decent profit is still in doubt since it may not have won much ground on royalties. Apple and Amazon also pose threats that could deter investors for now.
Swedish banks prepare for mini-reverse Brexit 20 Jul 2017 Nordea has hinted it may leave its home country unless Stockholm joins the EU banking union. Sweden would have to surrender control over banking rules, but would get stable regulation and economies of scale. The UK, which is pulling away from the EU, looks ever more an outlier.
Ericsson throws kitchen sink at the kitchen sink 18 Jul 2017 The Swedish telecom kit maker has issued its second profit warning in four months. Demand for wireless networks is shrinking faster than thought. At least Ericsson is no longer losing market share, and has put a number on touted cost savings. It can’t afford to disappoint again.
AstraZeneca’s 3 billion pound CEO is overvalued 13 Jul 2017 That is how much was wiped off the drugmaker’s market value after a website reported Chief Executive Pascal Soriot will join Teva. Any such exit would hardly inspire confidence, coming after another senior departure and before a key medical trial. But the reaction is excessive.
Volvo’s electric shift gives Tesla a shock 5 Jul 2017 The Sweden-based carmaker will phase out gasoline-powered vehicles starting in 2019. It has less than 1 percent of the global market but its plan challenges Elon Musk’s growth ambitions, especially in China, where Volvo owner Geely is based. The road to the future may be bumpy.
Hexagon would be a pointy-edged takeover target 14 Jun 2017 At a price of almost $20 bln, the Swedish manufacturing software group offers a poor return for a buyer. That may not deter a rival such as ABB tooling up for the switch to automated factories. If globalisation goes into retreat, such a deal could even prove forward-thinking.
Activist adds teeth to Ericsson’s turnaround 31 May 2017 Cevian has taken a 5 pct stake in the Swedish telecoms-kit maker. Boss Borje Ekholm’s strategy of slimming down and boosting margins is sound, but lacks credibility as he was on the board when things turned sour. It can’t hurt to have a big investor breathing down his neck.
Ericsson turnaround has a static problem 25 Apr 2017 The Swedish telecoms kit maker made a $1.4 billion first-quarter operating loss after provisions and writedowns announced in March. New boss Borje Ekholm has the right strategy. But investors will still fret about further nasty surprises and a lack of progress on non-core sales.
Swede tissue bid justifies breakups without tears 13 Apr 2017 Forestry group SCA reportedly received an offer for the hygiene business it is about to demerge. Above $22 bln for the unit’s equity would be good. Either way, SCA has given itself options. Others faced with calls to break up, from Akzo Nobel to BHP Billiton, can take note.
Spotify considers listing without I, P and O 7 Apr 2017 The $8.5 bln music-streaming service may float shares without raising capital. A new deal with Universal could make cash needs less urgent. Private funding also has altered startup models. Even so, there's a reason most firms don't march to the beat of a different IPO drummer.
H&M may struggle to dress two markets 30 Mar 2017 Sales at the fashion retailer missed its target, sending shares close to a four-year low. H&M is opening stores in fast-growing emerging markets, while launching a posh new brand to liven up flagging rich-country sales. It’s tough to find a business model that suits both.
Ericsson has solid targets but odd repair man 29 Mar 2017 Boss Borje Ekholm has new objectives to sort out the Swedish telecom-kit maker, whose stock has halved in value since mid-2015. Lifting depressed margins would be a challenge even for an outsider. It will be especially tricky given he sat on Ericsson’s board as it misfired.
Korea fraud electrifies case for ABB spinoff 22 Feb 2017 The Swiss group suspects its South Korean treasurer helped steal $100 million. Fraud equivalent to a fifth of 2015 local sales was only uncovered after the executive absconded. This plays into the hands of activist investors who wanted ABB to become less complex.
Handelsbanken’s love for clients has a downside 8 Feb 2017 The Swedish lender posted a 23 pct year-on-year drop in fourth-quarter earnings after a $40 mln charge on a loan made by its Danish business. Handelsbanken boasts its customers are happy. If some are getting easy credit, investors may wish they were less so.
H&M’s new sales target could fray quickly 31 Jan 2017 The Swedish fast-fashion chain is now targeting annual sales growth rather than how many new stores it opens. Its new goal of 10-15 percent growth is ambitious. With margins under pressure, an unexpected increase in pretax profit in the fourth quarter may be a passing fad.
Chinese tycoon turns cinema buyout into big score 27 Jan 2017 AMC, the cinema chain backed by China's richest man, is paying nearly $1 bln to become the Nordic No. 1. After a short stint in the director's chair, sellers Bridgepoint will enjoy a blockbuster return. It pays to be a seller when an A-lister like Wang Jianlin has an epic vision.
Hexagon CEO probe adds to Swedish governance murk 31 Oct 2016 Norwegian authorities have detained the $13 bln Swedish IT company's boss, Ola Rollen, for suspected insider trading. Rollen, who denies the charges, has grown Hexagon's market cap over 50-fold. After misdeeds at the likes of Swedbank, local scandals are no longer even a shock.
GE plays tactical hardball with Elliott 27 Oct 2016 The U.S. industrial firm is feuding with the hedge fund over two 3D-printing companies. It refused to cave in to Elliott on one, opting for a rival instead, and raised its bid on the other. This is a decent enough compromise and will stop activists from seeing GE as easy prey.
Ericsson bloat puts reverse charge call on shares 21 Oct 2016 The $18 bln Swedish telecoms kit maker burned through cash in the third quarter and lost revenue in its key North American market. The gory details follow last week’s profit warning. Ericsson's huge cost base has left it floundering as demand for mobile broadband upgrades slows.
Ericsson’s poor strategy rings in fresh pain 12 Oct 2016 The Swedish telecom company's dividend is at risk after third-quarter operating income slumped more than 90 percent. Industry peers are also exposed to falling demand for mobile network kit. But Ericsson has cut costs too slowly and embarked on misguided diversification.