Ericsson Nikola Tesla Announces Results for First Six Months

Total Croatia News

Exports are increasing, while sales in Croatia drop sharply.

In the first six months of the year, Ericsson Nikola Tesla had net profits of 51 million kuna, which is similar to the same period last year, while total sales increased by 7.5 percent, according to results released on Tuesday by the company, reports Jutarnji List on July 26, 2016.

The sales revenue in the period reached 730.3 million kuna, while the year before they amounted to 679.4 million kuna. The net profits decreased by 2.4 percent and amounted to 51 million kuna.

At the Croatian market, the company recorded 131.9 million kuna of sales revenues, which was 14 percent less than in the same period last year. At the same time, revenues from sales in export markets increased by 15 percent to 159.8 million kuna. The so-called Ericsson market brought in 438.6 million kuna of sales revenues, which was 13 percent more than last year.

The share of the domestic market in total sales was 18.1 percent, the share of services for other Ericsson companies was 60 percent, while other export markets accounted for 21.9 percent.

The markets of South Eastern Europe (Bosnia and Herzegovina, Montenegro and Kosovo) brought decrease in sales by 30.5 percent compared to the same period last year and amounted to 66.4 million kuna. At the same time, the CIS market sales increased by 117.6 percent to 93.4 million kuna.

“Business results for the first half of the year show a continuation of stable business operations”, said the CEO of Ericsson Nikola Tesla Gordana Kovačević. She added that the Ericsson market was continually growing due to business expansion and new responsibilities in the segment of research and development, as well as in the area of ​​managed services. Consequently, the company continued to employ new workers and in the first half of the year it employed 119 new experts.

The domestic market and the markets of South Eastern Europe brought lower revenues due to negative economic and political trends, said Kovačević, adding that the additional challenge was strong competition, as well as consolidation and centralization of the purchasing processes by global customers and operators.

Kovačević expects that economic uncertainty and current trends in sales will mark the second half of the year as well, and therefore risk management and cost efficiency will be in the focus of the company.


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