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Business results of joint stock company Ericsson Nikola Tesla in first nine months 2014
Categories: Business Results Investors
Gordana Kovačević, the President of Ericsson Nikola Tesla, comments: “Third quarter results show continuing stabile business performance. Reflecting the first nine months, sales revenue decreased by 4.5% year-over-year. Sales revenue in the domestic market equals the last years, while the Ericsson market records further growth, which partially mitigated revenue decrease in other markets. Export share in total sales revenue is 74%.
With Hrvatski Telecom (HT), the negotiations on collaboration in the managed services segment were successfully finished and resulted in agreement signing. Ericsson Nikola Tesla Servisi d.o.o. (EHR), a newly founded Ericsson Nikola Tesla d.d. daughter company, will manage HT mobile and fixed network within the five year agreement framework, which encompasses Network Operations Centre, field operations, planning and functionalities regarding development.
Despite the unfavorable economic and political environment in the region and beyond, during Q3 we signed several new deals, from which I would like to highlight the continuing collaboration with BH Telecom on expanding their 3G network and new deals agreed with Velcom in Belarus. Ericsson market shows a stable trend with business activities and further income growth, and accounts for almost 48 % in the Company's total sales revenues.
Net profit amounting to MHRK 58.9 was achieved, representing 6.5 % return on sales. Gross margin is lower year-over-year, as a result of business mix, price pressure and investments in products and services development. The end of the quarter was concluded with a solid balance sheet and an equity ratio of 50%. A strong cash flow from operating activities was achieved, amounting to MHRK 133.3. Total cash balances, including short term financial assets amount to MHRK 196.8 which accounts for 31.6% of the total assets.
In line with our strategic plan, we work on strengthening our position/sales in new and targeted areas for telecom operators and in the Industry & Society segment. At the recently held evaluation meeting of Ericsson Heads of organizations, responsible for the development of certain products, our R&D Center was evaluated as one of the best and the most reliable research centers within the Ericsson Corporation. The evaluation of the collaboration so far, represents an excellent basis for further partnership and responsibilities expansion, which is our strategic priority.
During the third quarter, we have begun a new cycle of strategic planning, based on facts which describe the current position in the business and technology segments, as well as on the analysis of the future movements/trends in a transforming ICT market. Ericsson Nikola Tesla development strategy is focused on further position strenghtening in four interest areas. We want to be the leading ICT transformation partner for our customers, recognised as a company that attracts, develops and retains talented employees, leads and drives positive changes in the society and creates value for shareholders. Our goal is to achieve the best business results by transforming, focusing on new business opportunities, improving operative efficiency, managing working capital and risks.“
Communications Ericsson Nikola Tesla
Despite the unfavorable economic and political environment in the region and beyond, during Q3 we signed several new deals, from which I would like to highlight the continuing collaboration with BH Telecom on expanding their 3G network and new deals agreed with Velcom in Belarus. Ericsson market shows a stable trend with business activities and further income growth, and accounts for almost 48 % in the Company's total sales revenues.
Net profit amounting to MHRK 58.9 was achieved, representing 6.5 % return on sales. Gross margin is lower year-over-year, as a result of business mix, price pressure and investments in products and services development. The end of the quarter was concluded with a solid balance sheet and an equity ratio of 50%. A strong cash flow from operating activities was achieved, amounting to MHRK 133.3. Total cash balances, including short term financial assets amount to MHRK 196.8 which accounts for 31.6% of the total assets.
In line with our strategic plan, we work on strengthening our position/sales in new and targeted areas for telecom operators and in the Industry & Society segment. At the recently held evaluation meeting of Ericsson Heads of organizations, responsible for the development of certain products, our R&D Center was evaluated as one of the best and the most reliable research centers within the Ericsson Corporation. The evaluation of the collaboration so far, represents an excellent basis for further partnership and responsibilities expansion, which is our strategic priority.
During the third quarter, we have begun a new cycle of strategic planning, based on facts which describe the current position in the business and technology segments, as well as on the analysis of the future movements/trends in a transforming ICT market. Ericsson Nikola Tesla development strategy is focused on further position strenghtening in four interest areas. We want to be the leading ICT transformation partner for our customers, recognised as a company that attracts, develops and retains talented employees, leads and drives positive changes in the society and creates value for shareholders. Our goal is to achieve the best business results by transforming, focusing on new business opportunities, improving operative efficiency, managing working capital and risks.“
Communications Ericsson Nikola Tesla
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