Ericsson Nikola Tesla's net profit falls 18.3% y/y in Q1

Sales revenue amounted to 52 million euro in the three months through March 2024, down from 69.4 million in the first quarter of 2023, Ericsson Nikola Tesla said in a press release.

Gross margin increased to 16.8% from 16.6%, as a result of profitability program and business mix. However, due to lower sales revenue, gross profit decreased by 24.3% on the year in the first quarter, to 8.7 million euro, the company explained.

Although selling and administrative expenses remained at the same level year-over-year, amounting to 2.8 million euro, selling expenses increased due to intense activities on new business opportunities, while administrative expenses were lower.

Operating profit decreased by 22.7% to 7.4 million euro.

A non-renewal of a contract with Hrvatski Telekom [ZSE:HT] regarding managed services had an impact on the decline of sales revenue year-over-year, CEO Gordana Kovacevic said.

"Additionally, the decline of sales revenue was impacted by the operators’ cautious investments in network modernization and the dynamics in the implementation of contracted activities, which was partially offset by growth in other business segments," Kovacevic added.

Ericsson Nikola Tesla's shares traded 0.49% higher at 206 euro on the Zagreb Stock Exchange by 1128 local time on Thursday, bourse data showed.

($ = 0.932 euro)