By Dhirendra Tripathi

Investing.com – Ericsson ADRs (NASDAQ:) traded 6.2% higher in Monday’s premarket as the adoption of 5G wireless technology gathered pace in global markets, helping it overcome the loss of market share in China.

Organic revenue increased 8%, excluding a decline in sales to mainland China. The target EBIT margin of 12-14% for 2022 was met a year sooner than expected, just shy of the high end.

Consolidated sales rose by 3% in the past year to the top of 71 billion Swedish Kronor (about $7.7 Billion) due to more 5G-ready countries. Clients also placed more orders for network expansion. This growth was principally driven by 5G deployments throughout North America, Europe and Latin America. Also, there has been an increase in demand for digital services in the Middle East or Africa. In the same time period last year, 29% of net quarterly sales came from the U.S. but that number rose to 32%.

On the other hand, China’s contribution halved to 4% for the full year as the company found itself in the crosshairs of a trade battle between Europe and China. China had retaliated similarly to Europe, which barred ZTE (HK.) and Huawei from 5G infrastructure construction contracts due to security issues. Ericsson (BS) laid off employees in China, and paid 500 million Kronor for restructuring costs.

A lower tax rate helped net profit rise 41% and reach 10 billion Kronor.