Ericsson Nikola Tesla Group achieved record results in 2021

In 2021, Ericsson Nikola Tesla Group realized a successful business performance and achieved excellent results, record revenue and growth in all markets.

• Sales revenue amounted to MHRK 2,204, up by 9% year-over-year
• Gross profit amounted to MHRK 254.3, up by 46% year-over-year
  Gross margin increased to 11.5%
• Net profit was MHRK 177.3, up by 88% year-over-year.

In 2021, Ericsson Nikola Tesla Group realized a successful business performance and achieved excellent results, record revenue and growth in all markets.

„In Ericsson Nikola Tesla Group, 2021 will be remembered as another year during which, with a lot of skills, knowledge and dedication, we effectively managed health, economic and social consequences of the pandemic and during which, despite all the challenges, including disruption in the global supply chain, as well as political and economic situation in certain markets, we achieved excellent business results. Strategic multi-year agreements we signed with the customers in Croatian and export markets in the last two years, new responsibilities assigned by Ericsson to our R&D Center and other expert centers for end-to-end solutions and services, our experts’ quality and innovativeness, as well as a continuous focus on new areas of growth and transformation processes in the company had a significant positive impact on the company’s results.

Our results show that we managed to remove or mitigate most of risks. We have continued to build an innovative organizational culture of high performance and invest in the future. Another successful year can be attributed to our continuous focus on customers, investment in technology leadership and exceptional contribution of our employees. Therefore, I would like to use this opportunity to thank all employees on their focus, professionalism and integrity, their perseverance and dedication even in such demanding circumstances, as well as our customers and partners for their confidence in us.“ stated Gordana Kovačević, president of Ericsson Nikola Tesla, and continued: “In 2021, we achieved revenue growth in all markets. Sales revenue amounted to MHRK 2,204 up by 9% year-over-year. With more than one billion HRK of revenue realized in export markets, our Group is still ranked high at the list of the best Croatian exporters, and a leader in exporting knowledge.

Owing to quality delivery of innovative solutions, products and services, we have continued to strengthen cooperation with our strategic partners in all three of our business areas – operator segment, ICT solutions for Industry&Society, and services to Ericsson and others.

In operator segment, the most significant event in 2021 was the public auction for the allocation of the frequency spectrum for 5G network, that gave momentum to 5G technology implementation in Croatia. Ericsson Nikola Tesla Group, as the provider of solutions, equipment and services for 5G, provided great support to its strategic partners, operators HT and A1 Hrvatska. As it is shown by independent international tests year after year, our customers’ networks are among the best in the world, which confirms that we are recognized as a reliable partner that provides the customer with the best user experience on a quality and safe infrastructure.

Our daughter-company, Ericsson Nikola Tesla Servisi d.o.o., provided a significant contribution to achieving results in operator segment. This company successfully realized the agreed objectives regarding the build and maintenance of fixed and mobile telecommunication infrastructure, and we would like to highlight the completion of FTTH connections build for more than 100,000 households.

Our overall business results were positively impacted by the results in the business segment Industry&Society, where we have been intensively working on projects in e-Health, e-Business and public safety, and on many innovative solutions for Industry 4.0. We also made a significant step forward in e-Environment.

In export markets, we would like to highlight the contracts with our long-term partners in the operator segment in Bosnia and Herzegovina, Montenegro, Belarus, and Kosovo.  In ICT solutions for Industry &Society, our currently largest export project is the delivery of national healthcare IT platform for the Republic of Belarus. The project is ongoing as planned, however a challenging political situation in certain markets, such as Belarusian, continues at the time this report is published. Therefore, we continue to actively monitor the situation development and continue to estimate risks in order to timely respond to potential challenges.

The delivery of services for Ericsson has been continuously increasing, and our R&D Center and other expert centers, owing to knowledge and work of its experts, continue to build a positive perception in the global corporation and contribute to our company's results. The biggest software design center in Croatia is in Ericsson Nikola Tesla, where more than 1700 experts work on the development of the latest technologies and has the potential for further growth.

Thanks to investors' trust in the quality and stable business performance of the company, as well as the importance of ICT industry, and despite all the uncertainties and fluctuations in the capital market, Ericsson Nikola Tesla's share value increased by 22.67% at an annual level.

In 2021 we have also continued a very good cooperation with technical and other faculties, and thus more than 150 students have the opportunity to daily learn and develop their skills by participating in our research and development projects. In addition to cooperation with the faculties, we have continued to work with the students through our Summer Camp. Last year Summer Camp marked its 20th anniversary, and during this period 820 students participated in 380 projects, supported by 150 mentors.

Wellbeing of our employees is one of company’s priorities. Through many benefits and quality educational programs, we provide support to our employees in preserving their physical and mental health. Moreover, we have been continuously investing in our experts' competence development and continue to recruit.

In 2021, more than 400 new employees, mainly highly educated STEM experts, strengthened Ericsson Nikola Tesla Group. The Group now has approximately 3,500 employees. Experts with ICT competences and interested in working on interesting activities and latest technologies, and primarily software development, are welcome to our company. 

Gordana Kovačević, president of Ericsson Nikola Tesla, closed her remarks by saying:

„In 2022, we expect increase in demand for ICT solutions to continue, which opens new opportunities for our company. We will continue to invest in research, development and implementation of modern ICT solutions, as well as our own digital transformation. Moreover, we will continue to invest in skills and knowledge of our employees, who are the key to our success, and open new jobs. In this way, we secure our company’s successful and long-term sustainable business performance and contribute to the realization of EU objectives in a digital decade. Having in mind the importance of ICT as the foundation of the networked society's digital infrastructure, we are positive about the further development of our industry, and the role Ericsson Nikola Tesla Group has in this process.

In addition to the opportunities it brings, 2022 will be a challenging year due to political and economic uncertainties, disruptions in supply chain, significant increase in energy prices, increase in the prices of materials, raw materials and services, and will demand great knowledge, leadership and strong focus on company’s strategic directives. We remain focused on risk management, profitability and cash flow, and on corporate social responsibility.
We will put our maximum efforts to continue to be as efficient and as successful, both in overcoming challenges, as well as in the realization of new business opportunities. Excellent business results achieved in 2021 motivate us for further excellence in everything we do.”

Ericsson Nikola Tesla Company Communications