Business results of joint stock company Ericsson Nikola Tesla in H1 2013

“The Company continued its successful business performance during H1, being focused on profitable growth, efficiency, cash flow and risk management. Operating profit increased by 34.6%, while net profit increased by 9.7% YoY. Gross margin increased to 19%, primarily due to favorable product mix. Return on sales (ROS) increased to 13.1%. Despite  dividend payment in June, total cash balances, including current financial assets, remained at the high level of MHRK 429.8 at the end of the H1. Cash flow from operating activities is positive. The Company's balance sheet remained strong with total assets of MHRK 989.4  and equity ratio of 62.5%." commented Gordana Kovačević, the president of Ericsson Nikola Tesla.

”Sales revenue records a positive trend in all markets, except CIS. I am very pleased with the sales revenue increase in domestic and regional markets and continuous good results in the Ericsson market. In CIS markets sales revenue decreased as expected, reflecting a large single contract on equipment delivery for Rostelecom in 2012. Intensive sales activities in these markets are ongoing, resulting in new business opportunities, primarily in Georgia and Russia.
  
Our strong focus on export markets resulted in a high export proportion of 75% in the total sales revenue. A vast majority of export activities, accounting for even 43% in total sales revenue, refer to export of knowledge, i.e. research and development and other expertise. The Company promotes innovativeness aiming at creation of new values and business opportunities, this year having resulted in almost 400 innovative ideas and 4 new patent proposals. 
 
In implementing our long-term business strategy we are focused on profitable growth based on technology leadership, leadership in services, regional/global presence and e2e concept. We continue to strengthen our leading position in 4G/LTE and are focused on TV and media distribution as well as OSS and BSS solutions. Knowledge and skills development of our employees have an important place in the Company’s strategy.
 
Although in 2013 economic uncertainty and business challenges are still present, ICT has a great potential and an important role in development of business and society as a whole. On the way towards networked society, the Company is well positioned to continue to support its partners and customers in a transforming ICT market.”, concluded Gordana Kovačević

Communications Ericsson Nikola Tesla