Croatia’s Ericsson Nikola Tesla 9-mo cons net profit drops on lower sales

Total consolidated sales revenue decreased 5.7% to 1.07 billion kuna through September, Ericsson Nikola Tesla said in a Zagreb bourse filing.

"Despite continuous sales revenue growth from services in Ericsson market, we have still not been able to fully neutralize the decrease in sales in CIS markets," the company explained.

Of the total sales revenue, the domestic market accounted for 17%, services to Ericsson made up 62.9% (of which 12% related to Managed Services in Croatia), while other export markets participated with 20.1%.

On the domestic market, sales revenue amounted to 182.4 million kuna, down 1.5% year-on-year, while exports plunged 31.6% on the year to 214.6 million kuna.

In Bosnia and Herzegovina, Montenegro, and Kosovo sales revenue amounted to 97.1 million kuna, up 0.8% year-over-year. "Long-term unfavorable economic and political situation in these markets has a negative impact on the level and dynamics of operators’ investments," Ericsson judged.

On the Ericsson market, sales revenue amounted to 672.4 million kuna, up 5.9% year-over-year.

Swedish telecoms equipment giant Ericsson owns 49.07% of the Croatian company.

(1 euro=7.5134 kuna)