ENT Posts Solid Results for 3Q22

In the first nine months of 2022, Ericsson Nikola Tesla Group maintained stable operations and achieved solid results. The company continued the implementation of numerous projects in the domestic and export markets and achieved sales revenue of more than HRK1.5 billion (€199 million).

At the Group level, sales revenue in the first nine months increased by 0.8% year-over-year. Gross margin decreased to 9.0%, primarily due to sanctions in Belarus, as well as the increase of labor costs and rising prices of energy, raw materials, and materials, while operating profit decreased by 22.4%, amounting to HRK102.6 million. With the one-time impact of the termination of the eHealth implementation project in Belarus excluded, the gross margin is 10.7%, while operating profit decreased by 2.2% year-over-year, amounting to HRK129.3 million.

ENT had a positive cash flow from operating activities, amounting to HRK64.8 million, in line with expectations considering the market environment. The Group concluded the end of the third quarter with a healthy balance sheet, with an equity ratio of 34.7%. Cash and cash equivalents, including short-term financial assets, at the end of Q3, amounted to HRK462.6 million (40.0% of the total assets).

“As well as in the previous quarters, Q3 was marked by a complex geopolitical and economic environment caused by the war in Ukraine, inflationary pressures in the form of rising prices of labor, energy, and materials, disruptions in supply chains, as well as the insufficient number of ICT experts. Despite all the challenges, we have continued a stable business performance, and recorded a slight increase in sales revenue compared to the same period of the excellent 2021, because of revenue growth in the operator segment in the neighboring markets and continuous growth of services to Ericsson. This offset lower revenue in the domestic market, as well as the decline in revenue in Belarus due to sanctions,“ said Gordana Kovačević, President of Ericsson Nikola Tesla.