Hans Vestberg, CEO of Ericsson, said the company is not happy just with achieving profitability, and is focusing on profitable growth and sustainability.

Speaking at the company’s Annual General Meeting of Shareholders in Stockholm, Vestberg said: “We saw variation in growth for the different segments, but overall we are not satisfied with profitability.”

Vestberg described sales in 2012 as “basically flat” compared to 2011. The company generated revenue of SEK227.8 billion, or SEK600 million per day.

Ericsson’s Networks business failed to perform as strongly as it did in 2011, although the company remained the market leader with a 35 per cent share, claiming an installed base twice the size of the second and third ranked companies combined. The division represented 51 per cent of sales.

Vestberg acknowledged that the overall stable performance was achieved during a challenging year for the industry and that there was growth in Global Services and Support Solutions, two of the company’s three business segments.

Ericsson made a loss in the fourth quarter of 2012 due to an anticipated SEK8 billion charge related to its ST-Ericsson joint venture. However, the results were well received, due to the fact that there are positive signs for its core operations in 2013.

One of the areas that has potential to deliver profitable growth is IPTV. The company announced its acquisition of IPTV company Mediaroom this week, which Vestberg said would make Ericsson the leading provider of IPTV technology with a market share of more than 25 per cent.