Business results of joint stock company Ericsson Nikola Tesla in Q1 2013
Gordana Kovačević, the president of Ericsson Nikola Tesla, comments: “During Q1 the Ericsson Nikola Tesla continued its successful business performance, focusing on the implementation of the strategic priorities. We continued to focus on efficiency improvement and cost optimization in order to increase the profitability and competitiveness on the market. We achieved a solid sales revenue growth amounting to 35% year-over-year. Sales revenue growth was reported in all market segments.
I am especially satisfied with the good business development with our partners and customers in the region. We continue to capture new business opportunities in the CIS market, where, intensive sales activities are ongoing. As of both the domestic market and Ericsson market, a positive trend was reported too.
The operating profit and net income improved by 34% and 37%, respectively, year-over-year. Return on sales (ROS) increased to 14.8%. The total cash balances, including current financial assets remained stable and amounted to MHRK 651 at March 31, 2013. Cash flow from operating activities was slightly positive, primarily reflecting changes in working capital. The Company has a balance sheet with the total assets amounting to MHRK 1,196.8 and equity ratio of 67.2%.
Our strategic priorities have been oriented to the areas with growth potential, such as mobile broadband access, services and OSS and BSS. We expect further strong increase in mobile network data traffic volume, generated by the significant growth in number of mobile user devices and the increase in internet use, as well. Our strategy is gaining positive momentum by the current industry trends, although in some markets we still expect microeconomic uncertainty to remain.
A vision of the Networked Society and the transformation role of ICT on all segments of the society, were in a focus of the Mobile World Congress 2013 in Barcelona, the most important event dedicated to mobile communications. Our company participated there with two solutions, i.e. a prototype RPM (Remote patient monitoring) on IPTV that connects Ericsson Mobile Health and Ericsson IPTV portal Avalanche, and with a component for m2m (machine-to-machine) Service Enablement for the USA operator AT&T.
We marked the 60th anniversary of partnership and collaboration between Ericsson and Ericsson Nikola Tesla. This model of collaboration and partnership is an example of a successful strategic interconnection, synergy and benefits to both parties. On this occasion, the company was honored by the visit paid by the Swedish Royal Couple, the President of the Republic of Croatia, as well as ministries in the Croatian Government. As a part of the official delegation of the Kingdom of Sweden, the company was visited by the Minister of Foreign Affairs, the Minister for the Environment, Hans Vestberg, the President and CEO of Ericsson Corporation, and the delegation of Swedish businessmen.”
Communications Ericsson Nikola Tesla