„Ericsson Nikola Tesla's key performance indicators for the first nine months meet our expectations. We have an increase in sales revenues and operating profit. Despite increasingly more difficult market situation we maintain a sound margin level and generate strong cash flow from operating activities.
In view of the situation and developments in the ICT industry I can say that our and Ericsson's results are in tune with world trends, yet with a more positive effect we can be proud of. Still, despite the strong growth in wireline and wireless broadband (access), despite global HSPA networks gathering momentum, despite exponentially growing mobile subscriptions worldwide and a growing demand for ICT and e-business solutions, there is a rising concern among businesses over global recession and its consequences. It is therefore uncertain how operators will act in the future and whether or to what extent the consumers would spend less on telecom service segment.
We cannot influence global developments but what we can do is to continuously improve our operational excellence, to use all business opportunities and to find out new areas of growth. Key to our local and regional business success are Ericsson technology brand and its business reputation combined with the strength and competitive advantage of Ericsson Nikola Tesla.
In my experience our focus on strategic priority areas, innovative solutions and internal synergy proved to be crucial for stable operations and long-term growth“, says Gordana Kovačević, president of Ericsson Nikola Tesla.
In the first nine months of the year Ericsson Nikola Tesla performed as follows:
Sales revenues are up 3% compared to the same period last year, owing to a considerable sales growth in regional markets, good performance in domestic market and knowledge sales to Ericsson. Orders booked are up 1%.
In domestic market the sales revenues are up 7.6%, amounting to 416.6 MHRK.
In the regional markets (Bosnia and Herzegovina, Montenegro and Kosovo) sales revenues are up 32.2%, totaling 334.6 MHRK, nearly half of it achieved in Bosnia and Herzegovina.
In the Commonwealth of Independent States sales revenues amount to 249.1 MHRK which is down 25.2%. The results achieved in the Russian market are better than last year; in Belarus and Kazakhstan there was a time shift in several scheduled activities, affecting considerably total results in the reported period.
In Ericsson market sales revenues are up 4.2%, totaling 308 MHRK owing to research and development activities and sales of services.
The structure of external sales (i.e. without Ericsson market) in our three business segments is as follows: network infrastructure accounts for 63%, services for 29% and multimedia solutions (including enterprise systems) for 8%. The system integration accounts for 39% in total services sales structure.
