Ericsson Nikola Tesla reported today a net profit for the past year of 128.4 million kuna, which is 37 percent less compared to 2008, and a dividend of 120 kuna is proposed.
Last year, the company achieved total revenue of 1.4 billion kuna, which is 21.5 percent less compared to the same period the year before. Among the positive news is still a strong net cash flow from operating activities amounting to 284 million kuna achieved last year (342 million in 2008). Cash and cash equivalents amount to 414.9 million kuna. Booked orders and sales revenue are down 21 and 22 percent due to significant reductions or delays in investments by telecom operators primarily in export markets. The market in the CIS has fallen the most, where revenues in 2009 are down 43.4 percent, while the Croatian market recorded a decline in sales revenue of 13.4 percent. In total sales, the share of the domestic market is 34 percent, while the share of the export market is 66 percent. Knowledge export to Ericsson’s market accounts for 30 percent. Operating expenses (selling and administrative) have been reduced by 15.4 percent.
– The market environment in which Ericsson Nikola Tesla operated during 2009 was extremely challenging and marked by constant changes. We witnessed reduced and slowed investments by operators, budget cuts, and delays in agreed projects for network development and new functionalities in the ICT segment. Ericsson Nikola Tesla, in accordance with the market situation, took clear measures and applied appropriate strategies and organizational and financial models, significantly reducing business risk – commented the business results by the CEO of the company, Gordana Kovačević.
