ENT Reports Stable Business Performance in 1Q24

Croatia-based Ericsson Nikola Tesla reported Sales revenue of €52 million, as net profit amounted to €6.4 million. A positive cash flow from operating activities was realized, amounting to €1.1 million, as well as a solid level of orders booked for the continuation of the business year.

“We started the year by contracting new business deals in the operator segment in Croatian and export markets, as well as in the Digital Society segment, thus ensuring a solid level of orders booked for the continuation of the business year, said Gordana Kovačević, President of Ericsson Nikola Tesla. “However, as we have previously commented, non-renewal of the contract with Hrvatski Telekom regarding managed services had an impact on the decline of sales revenue year-over-year. Additionally, the decline in sales revenue was impacted by the operators’ cautious investments in network modernization and the dynamics in the implementation of contracted activities, which was partially offset by growth in other business segments. Despite all the challenges and the demanding market environment, we kept the leading market position, and we remain a strong strategic partner for our customers and partners.“

In the domestic market in the operator segment, ENT highlighted the cooperation agreement with Hrvatski Telekom (HT) based on which they will be the supplier of the radio part of HT's mobile network (RAN) until the end of 2027. ENT said it is pleased to continue the cooperation on the introduction of the 5G standard into HT’s mobile network, which began in 2018 and resulted in several achievements in the 5G mobile network on the Croatian market. By the multi-year contract with our partner A1 Hrvatska, ENT has been working on additional expansion of coverage and capacity of the 5G radio network as well as core network modernization.

The company said it has continued to strengthen its position in the Kosovo market by signing a framework multi-year contract with the operator Telekom Kosova, related to the modernization and maintenance of the complete radio network of this operator. They have also continued the cooperation with their long-term partner IPKO on the core network modernization and maintenance, among which we would like to single out the introduction of functionalities VoLTE and Mobile Number Portability. In other export markets, ENT signed contracts for mobile networks modernization and maintenance, among which the contract with HT Mostar for the implementation of the latest technological version of the Ericsson Evolved Packet Core (EPC) and Diameter Signaling Controller (DSC) solutions should be mentioned.