Gordana Kovačević, the President of Ericsson Nikola Tesla commented on the Company’s performance: “The total sales revenue increased by 87% year-over-year as a result of the revenue growth in both the CIS and Ericsson markets. Sales in the domestic and regional markets witnessed a decrease, mainly due to the unfavorable economic trends, political instability in the markets of the region, but also due to postponed customer investments.
I would like to underline the successful realization of the demanding 2G and 3G mobile network project for Rostelecom. The extent of this business can be best illustrated by the fact that the new Rostelecom network, based on Ericsson’s equipment, will cover more than 60% of the total population of the Russian Federation (143 million) and will provide a wide range of convergent information and telecommunications services in mobile and fixed networks across the Russian Federation. This project set the high requirements on our experts and was also an opportunity to show knowledge and teamwork spirit.
Owing to investments into competencies and the advanced technological infrastructure, Ericsson Nikola Tesla’s Research and Development (R&D) Center continuously expands its product portfolio and responsibilities and is engaged in complex and demanding global projects. The R&D performance, based on quality and value indicator analyses, was highly ranked by Ericsson’s R&D Operational Steering Group (OSG). The received recognitions are commitments for further dedicated engagement regarding product development and improved ways of working as well as an opportunity to participate in new technological challenges. We also marked the 30th anniversary of Ericsson Nikola Tesla’s R&D Center in Split.
As of the domestic market, Ericsson Nikola Tesla became the sole vendor of the state-of-the-art radio access network (Single RAN) to Vipnet. The contracted business is a part of the five-year strategic contract between Ericsson and A1 Telekom Austria group, concerning the modernization and upgrade of Austrian and Croatian mobile networks to LTE technology. Thus, the position of our Company has been further strengthened as a leading vendor of the state-of-the-art solutions with a 100% share in the radio part of Vipnet network.
According to EuroHealth Consumer Index (EHCI) 2012, Croatia was ranked high among countries like Germany and United Kingdom, an improvement by 6 positions. This was primarily due to successful informatization of the primary healthcare system in Croatia, the project in which Ericsson Nikola Tesla plays an active role.
Almost all key financial indicators were improved year-over-year. The net profit increased 3.7 times year-over-year and amounts to MHRK 93. The strong cash flow from operating activities amounts to MHRK 110.9 and is a result of Company’s focus on cash conversion. Thus, at the end of Q3 2012, the total cash and cash equivalents, including current financial assets, amounted to MHRK 472.2.
The strategy of Ericsson Nikola Tesla is focused on further strengthening of Company’s position in the domestic, Ericsson and export markets, extension of the customer base, acquiring new responsibilities as well as providing state-of-the-art solutions, products and services. The key factors to achieve this are technology leadership, development of new models of knowledge acquisition as well as development of innovative solutions because this is the only way to ensure customer satisfaction and market competitiveness. I believe that ICT industry will continue to play a very important role in business and society as a whole. Introduction of new devices and applications results in greater users’ expectations regarding network quality and performance, what drives demand for our technological solutions and services and creates the space for innovation.”
Ericsson Nikola Tesla Company Communications
