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By Bloomberg

Ericsson AB shares had their biggest jump in a year after the company reported second-quarter sales that topped analysts’ estimates on rising spending by Asian and European wireless carriers to improve their networks.

Sales rose 11 percent to 60.7 billion kronor ($7.1 billion), the world’s largest maker of mobile-phone networks said Friday, beating the 58.9 billion-krona average of estimates compiled by Bloomberg. The gross margin, or the percentage of sales left after subtracting production costs, was 33.2 percent, weighed down by one-time restructuring expenses.

Operators are spending more in China, India and Europe to expand and improve the mobile networks that carry the huge volume of data consumed by users of video and music services such as Netflix and Spotify. Ericsson said demand in North America “stabilized,” after a period of slower network spending by carriers such as AT&T Inc.

The shares rose as much as 6.8 percent, the biggest gain since July 2014, and advanced 5.7 percent to 95.40 kronor at 9:12 a.m. in Stockholm. They had lost about 4 percent this year through Thursday.

Ericsson is trying to win more contracts as rival Nokia Oyj seeks to complete its acquisition of France’s Alcatel-Lucent SA, a deal that would give the enlarged company about 27.2 percent of the wireless-equipment market. Ericsson had 25.7 percent share of the market in 2014 and Huawei Technologies Co. 23.2 percent, according to Bloomberg data.

Profitability Challenge

Sales in North America, Ericsson’s largest market accounting for a quarter of revenue, slipped 4 percent from a year earlier, though they gained 19 percent from the first three months of 2015. Sales in northeastern Asia, its second biggest region, rose 8 percent from a year earlier. Revenue in western and central Europe increased 12 percent.

Ericsson’s attempt to increase sales is coming as the company also strives to boost profitability. Its 4 percent operating-profit margin in the first quarter was half of Nokia’s 8.4 percent. Earlier this year, Ericsson said some 1,700 workers would leave the company as it attempts to reduce costs.

The gross margin in the second quarter declined from 36.4 percent in the year-earlier period, hurt by 2.7 billion kronor in reorganization costs. Ericsson also said revenue from licensing intellectual property declined, primarily because of a dispute with a “major customer.” The company is fighting a global licensing battle with Apple Inc.