Ericsson Nikola Tesla’s Profit in 2024 Amounts to 15.6 Million Euros

The net profit of Ericsson Nikola Tesla (ENT) in 2024 amounted to 15.6 million euros, which is 29.7 percent lower than in 2023. it was stated on Wednesday during the presentation of the company’s business results, highlighting that the company operated stably in the previous year, which was extremely dynamic and challenging.

Consolidated revenues of 257.3 million euros are down 17.5 percent compared to 2023. At the same time, consolidated expenses were reduced by 18.3 percent, amounting to 234 million euros.

Total sales revenue amounts to 249.5 million euros, representing an 18 percent decrease compared to the previous year, primarily as a result of lower revenues in the domestic market due to the non-renewal of contracts in the area of managed services with Hrvatski Telekom, they say at ENT. Excluding revenues from managed services with Hrvatski Telekom, they would be 11.3 percent higher than in 2023.

Sales revenue in the operator segment in export markets and the Digital Society segment increased, and together with stable operations in the Ericsson market, they partially neutralized the decline in sales revenue in the operator segment in the domestic market.

In the domestic market, sales revenue amounted to 66.4 million euros, a decrease of 49.1 percent compared to the previous year. The reduced revenues, as stated, from sales are a result of the non-renewal of contracts in the area of managed services with Hrvatski Telekom and lower capital investments from our customers in mobile telecom infrastructure.

In export markets (excluding services for Ericsson), sales revenue amounts to 42.4 million euros, an increase of 31.6 percent compared to the previous year, while in the Ericsson market, sales revenue is down 0.7 percent, amounting to 140.7 million euros.

Gross profit in 2024 amounts to 28.4 million euros, a decrease of 10.7 percent compared to the previous year, primarily due to lower sales revenue. The gross margin increased from 10.5 percent in 2023 to 11.4 percent in 2024.

Operating profit was 22.1 million euros, a decrease of 10.6 percent compared to the previous year, as a result of lower sales revenue and gross profit.

Kovačević: 2024 was an extremely dynamic and challenging year

The president of ENT, Gordana Kovačević, stated that 2024 was an extremely dynamic and challenging year in which the company operated stably and provided customers and partners with the best technological solutions and services in all business segments. They realized, as she noted, several demanding projects and signed several strategically important contracts.

– What we planned, what we wanted, and what we could, we realized – she emphasized, noting that desires are always greater than realization, but not because of them but due to the postponement of some projects initiated by their customers. She believes that orders this year will show that they are on the right track and that the business results from the previous year provide a good foundation for the continuation of their journey into 2025 and the years ahead.

This year, as she said, they will work intensively on implementing the strategy and realizing strategic guidelines for the next period, with the goal of maintaining a leading position in the operator segment, R&D, and services by providing high-quality services in accordance with contractual obligations and customer expectations.

Despite their strong position in the domestic and export markets, they see signs of continued reductions in operator investments in network modernization in 2025 due to their focus on monetizing 5G. However, Kovačević stated that they believe that in the coming periods, their strategic partners will increase their investments in further expansions and modernization of mobile telecom infrastructure to ensure service quality for end users.

Additionally, to ensure stable operations, they are focused on profitability, cost and operational efficiency, cash flow from operating activities, and responsible risk management. They continue to invest in the digital transformation of their business by introducing new automated tools and optimizing processes using artificial intelligence.

Kovačević mentioned that they are still looking at potential acquisitions.

– The acquisitions we are considering need to be linked to our strategy – she said, noting that the areas and companies they are looking at are not limited to Croatia but extend to the broader region.

It is important to them, as she noted, the area of security and artificial intelligence.

– We will not rush, we are financially strong, we can go into investments, but we will strive not to make mistakes in that process, which is why it may be somewhat slower or seem that way – Kovačević emphasized.