Ericsson NT achieved 7.8 million euros in net profit

Ericsson Nikola Tesla reported a net profit of 7.8 million euros in the first quarter, which is a decrease of 1.2 percent compared to the same period last year, according to the consolidated report published on Thursday at the Zagreb Stock Exchange.

Sales revenue reached 69.4 million euros during this period, which is 0.6 percent lower than in the same period last year.

In the domestic market, sales revenue decreased by 7.3 percent to 26.1 million euros, and sales revenue in export markets (excluding services for Ericsson) fell by 19.7 percent to six million euros.

In Ericsson’s market, sales revenue amounted to 37.3 million euros, an increase of 9.1 percent compared to the same period last year.

In total sales revenue, the share of the domestic market accounts for 37.6 percent, services for Ericsson 53.8 percent, while other export markets contribute 8.6 percent.

The company’s operating profit reached 9.5 million euros, an increase of 3.3 percent compared to the same period last year.

– In the first quarter of 2023, despite the complex macroeconomic situation, the business results of the Ericsson Nikola Tesla Group show a continuation of stable operations – said the president of Ericsson Nikola Tesla Gordana Kovačević.

Sales revenue, as she noted, recorded a slight decline compared to the same period last year, amounting to 69.4 million euros. The delivery of services for Ericsson is continuously increasing, which, Kovačević stated, has neutralized the lower sales revenue in the domestic and export markets due to reduced capital investments by operators.

– Compared to the first quarter of 2022, the gross margin has increased to 16.6 percent, as a result of the sales mix and focus on operational and cost efficiency, while the operating profit remains at a similar level of 9.5 million euros – said Kovačević.

She also noted that the negative cash flow from operating activities is in line with their expectations for the first quarter, and given the current trends, cash flow is subject to quarterly volatility and should be viewed on an annual basis.

– We concluded the quarter with a solid balance sheet, with a share of equity in total assets of 39.7 percent – said Kovačević.

She mentioned that in order to ensure the long-term development and sustainability of the company and achieve growth in strategic business segments, they are investing and planning significant further investments in the development of strategic competencies, development of new solutions, products and services, potential acquisitions, investing in equipment for the development and testing of new technologies, and the digital transformation of the Ericsson Nikola Tesla Group, for which significant financial resources need to be secured.

She reminded that the Management and Supervisory Board made a joint decision and proposed to the general assembly of the company to vote on a dividend of 6 euros per share.