March 7 (SeeNews) - Croatian ICT solutions provider Ericsson Nikola Tesla [ZSE:ERNT] said on Monday the ongoing Russian invasion of Ukraine is impacting its business in Belarus.
“These tragic events have led to a tectonic shift and significantly hinder Ericsson Nikola Tesla Group’s business in certain markets,” the company said in a filing to the Zagreb bourse.
Ericsson Nikola Tesla has no contractual obligations in Russia and Ukraine but political and economic uncertainty created by the war in Ukraine adversely affects both the implementation of the company's contracted business in Belarus and planned business opportunities, the company said.
Although that Belarus is a close ally of Russia, Minsk said last week that Belarusian armed forces will not take part in the war in Ukraine.
Ericsson Nikola Tesla has a subsidiary with 25 employees in Belarus. One of its most important activities is the expansion of the LTE networks for local operators and digitization of the country's healthcare system.
These activities accounted for 4% of Ericsson Nikola Tesla’s total sales revenue last year and significantly contributed to the company's operating cash flow.
“Potential cessation of our activities in the Belarus market would certainly affect our plans and results, especially the planned sales revenue, operating margin and operating cash flow, but it would not ultimately disrupt Ericsson Nikola Tesla Group’s business and financial stability,” it said.
Ericsson Nikola Tesla's was the most traded share with a turnover of almost 2.6 million kuna by Monday afternoon on the Zagreb bourse. Its shares changed hands at 1,650 kuna, down 3.23% in the afternoon.
(1 euro=7.558 Croatian kuna)