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Ericsson Nikola Tesla Business results for 2012 in public

  Categories: Business Results Investors


The business results achieved in 2012 and the forecast for 2013 were published at the press conference.

 

Highlights:

  • Sales revenue: MHRK 1,913.3
  • Gross margin: 11.1%
  • Operating profit: MHRK 116.6
  • Net profit: MHRK 126.9
  • Cash flow from operating activities: MHRK 297.8
  • Proposed dividend: HRK 20 ordinary and HRK 150 extraordinary dividend per share

Gordana Kovačević, the President of Ericsson Nikola Tesla commented on the Company’s performance:
 

“The company’s focus on strategic projects, technology leadership and partnership with customers generated excellent business results. The total sales revenue increased by 64% year-over-year as a result of the revenue growth in both the CIS and Ericsson markets. Sales in the domestic market slightly increased year-over-year, while sales in the regional markets decreased due to unfavorable economic trends, political instability and postponed customer investments. In export markets, Ericsson Nikola Tesla generated 86% of total sales revenue.  

The net profit of MHRK 126.9 increased by 353% year-over-year. The strong cash flow from operating activities amounted to MHRK 297.8. Accordingly, the total cash and cash equivalents, including current financial assets increased by 10.7% year-over-year, amounting to MHRK 657. The Company has a balance sheet with total assets of MHRK 1,169.7 and equity ratio of 64.5%. 

The activities focused on operational and cost efficiency as well as risk management contributed to good results.  

Despite demanding business environment, we strengthened our market share and realized several strategic projects. In the Russian market, we successfully completed a demanding project on 2G and 3G mobile networks for Rostelecom. With the new mobile network, Rostelecom becomes a convergent operator that will offer its users a full range of converged information and telecommunications services in mobile and fixed networks across the Russian Federation. It is the largest deal the Company has signed in the past several years, and a new contract of such volume cannot be expected every year. In the domestic market, Ericsson Nikola Tesla became a sole supplier of the state-of-the-art radio access network to Vipnet and thus strengthened its position as a leading supplier of the state-of-the-art solutions. Furthermore, our business with T-Hrvatski Telekom (T-HT) continued by signing a long-term agreement on implementation of IP/MPLS core network, which is a cornerstone of future T-HT business performance as a convergent operator, and a way towards all-IP environment. As of ICT solutions for the business segment of industry and society, we signed contracts on maintenance and upgrading of the Central Information Healthcare System in Croatia. In Bosnia and Herzegovina, we signed a contract with BH Telecom on the extension of mobile network, covering 2G/3G technologies and being also preparation for the transition to LTE technology.  

The major part of our activities and generated revenue has been related to research and development and other expert activities. Ericsson Nikola Tesla has been continually expanding its portfolio and responsibilities, and has been engaged on complex and demanding projects. The performance of our Research & Development Centre in 2012 was highly ranked by Ericsson’s R&D Operational Steering Group. Having in mind the importance of this segment for the future of the company, in the period to come we shall focus, as much as possible, on the given area, thus improving our competitiveness in the global organization.  

ICT industry will continue to be of the utmost importance in the business development and the society as a whole. The introduction of new devices and applications results in greater users’ expectations regarding network quality and performance what increases demand for our technological solutions and services. Therefore our strategic priorities have been focused on areas with growth potential, such as mobile broadband access, services and operational and business support systems. Higher profitability and cost reduction remain in our strategic focus.  

There is no doubt that economic uncertainty and business challenges will also mark the year 2013. Therefore, a constant adjustment to technological and market conditions, as well as responsible risk management will be in our focus. We shall continue to develop partnership with our customers and use technology leadership, skills and competences of our employees as a significant competitive advantage“. 

Communications Ericsson Nikola Tesla

   

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