Ericsson Nikola Tesla achieved a net profit of 12.2 million euros in the first half of the year, which is an increase of 34.3 percent compared to the same period last year, according to the consolidated report of the company published on Tuesday.
Sales revenue amounted to 138 million euros, down 2.2 percent compared to the same period last year.
In the domestic market, sales revenue amounts to 51.8 million euros, a decrease of 11.4 percent compared to the same period last year. The decline in revenue, as explained by the company, is primarily the result of lower capital investments by operators.
In export markets (excluding services for Ericsson), sales revenue amounts to 13.9 million euros, a decrease of 10.2 percent due to the dynamics of operator investments and geopolitical instability.
In Ericsson’s market, sales revenue increased by 7.8 percent to 72.2 million euros.
In total sales revenue, the share of the domestic market accounts for 37.6 percent, services for Ericsson 52.4 percent, while other export markets contribute 10 percent.
Compared to the first half of 2022, the gross margin recorded an increase to 13.3 percent, primarily as a result of the sales mix and focus on operational and cost efficiency.
Accordingly, operating profit is up 44.3 percent, amounting to 14.7 million euros, while net profit is higher by 34.3 percent, amounting to 12.2 million euros.
The negative cash flow from operating activities is a result of changes in the payment dynamics of certain customers and is in line with expectations, the company states. In the second half of the year, they expect improvement and return to positive levels.
The company also states that they concluded the quarter with a solid balance sheet, with equity accounting for 38 percent of total assets. Cash and cash equivalents, including short-term financial assets, amounted to 65.8 million euros (40.2 percent of total assets) at the end of the second quarter.
Commenting on the results achieved, the president of Ericsson NT Gordana Kovačević stated that the continuation of stable operations and the results the Group achieved in the first half of the year demonstrate their resilience and strength to effectively respond to all business challenges and opportunities.
In the upcoming period, Kovačević said they remain strongly focused on the quality execution of contracted jobs in domestic and export markets and the development of business in all segments, with an emphasis on growth in the area of Digital Society.
They are also continuing with the digital transformation of the Ericsson NT Group to further enhance internal processes, efficiently respond to market demands, and strengthen their leadership position in the ICT industry.
Kovačević stated that their experts are working on modernizing networks and services for domestic and global operators, developing innovative digital solutions for various industries, smart cities, and local and state government bodies, providing quality services, and working on the latest technologies for global Ericsson.
– Regardless of the challenging and demanding environment in which we operate, we are investing in our future to ensure the long-term sustainable operation of the company and building a motivating and innovative organizational culture of high performance – concludes Kovačević.
