Not a good year for one of the most prominent Croatian technology companies.
Ericsson Nikola Tesla’s revenues amounted to 1.07 billion kunas in the first nine months of this year, which is 5.7 percent less than in the same period last year, while net profits fell by 10.8 percent to 51.9 million kunas, reports N1 on October 27, 2017.
The company’s report, published on Friday, says that the share of the domestic market in total sales revenues is 17 percent, while services performed for Ericsson from Sweden account for 63 percent and other export markets for 20 percent of revenues.
“Although market revenues have been growing steadily, we have still not been able to completely neutralise the drop in sales in the markets of the Commonwealth of Independent States. The Croatian market recorded a slight decline, while sales in Southeast European markets were at the level from the previous year,” said in the report Gordana Kovačević, the CEO of Ericsson Nikola Tesla.
She added that almost all key business indicators recorded positive trends; operating profits grew by more than 18 percent compared to the same period last year, to 70.4 million kunas, while profits before tax rose by 8.7 percent to 67.8 million kunas.
“Despite higher profits before tax, net profits were down by 10.8 percent compared to the same period last year, due to the lack of tax incentives for development and research activities,” said Ericsson Nikola Tesla in the report.
In the first nine months of this year, the company realised 182.4 million kunas in sales revenues in the Croatian market, which is 1.5 percent less than in the same period last year. In the export markets, not excluding Ericsson, sales revenues amounted to 214.6 million kunas, down by 31.6 percent year-on-year.
The most substantial drop, by 46 percent, was recorded in the Commonwealth of Independent States, where sales revenues amounted to 117.5 million kunas.
However, in the Ericsson group market, the company realised 672.4 million kunas of sales revenues during the first nine months of this year, which is 5.9 percent more than in the same period last year.
Translated from N1.