ENT Reported Solid Business Results for 1H25

After a tumultuous 2024, Ericsson Nikola Tesla returned to growth in the first half of 2025. The Croatian company reported growth in revenues and net profit for the period.

Sales revenue was €110.8 million, up by 1.7% year-over-year. The Telecom segment had €31.6 million in revenue, Digital Society €8.2 million, while R&D and Services reported revenue of €71.0 million. Gross profit was at €13.9 million, down by 12.0 %, as a result of increased material and employee costs, and activities aimed at optimizing operations. Gross margin decreased to 12.5%. Operating profit was €11.4 million, down by 13.2%, as a result of lower gross profit and increased selling and administrative expenses. Operating margin was 10.3%. Net profit was €9.6 million, up by 24.8%, as a result of lower income tax.

“ We continue to witness a slowdown of telecom operators’ investments in mobile infrastructure, uncertainties related to complex digital transformation projects, and pressures on the prices of our products and services. In such a challenging market environment, to ensure stable business performance and maintain competitiveness, we focus on business diversification through the development of new products and services, and new customers,“ said Gordana Kovačević, President of ENT Management Board.

In her statement, she pointed out a focus on cost effectiveness and efficiency of business processes, and the introduction of AI, automation of business processes, and initiatives within internal digital transformation. “Our strategy is focused on strengthening the leading position in mobile networks, growth in the Digital Society segment, and excellence in services and R&D. We base it on sustainable growth, market diversification, and strengthening technology leadership. Looking ahead, we are investing in new products, business segments, and customers, AI, which is necessary to accelerate innovation and drive internal efficiency, cyber security, and the competencies of our employees in the domain of AI and digital transformation,“ concluded Kovačević.