ENT Ended 2024 with a Double-Digit Drop in Sales

Croatian-based Ericsson Nikola Tesla ended the financial year 2024 with a drop in sales and profit. The company, however, has deemed its performance as 'stable'.

Total sales revenue amounted to €249.5 million, down by 18% year-over-year. The drop was primarily due to lower revenue in the domestic market as a result of the non-renewal of the contract with Hrvatski Telekom regarding managed services. Sales revenue in the operator segment in export markets and the Digital Society segment recorded growth and, together with the stable business performance in the Ericsson market, partially offset the decline in sales revenue in the operator segment in the domestic market.

Gross profit amounted to €28.4 million, down by 10.7% year-over-year, mainly due to lower sales revenue. Gross margin increased to 11.4% as a result of business mix and activities focused on improving efficiency and cost optimization. Operating profit amounted to €22.1 million, down by 10.6% year-over-year, as a result of lower sales revenue and gross profit. Operating margin amounted to 8.9%. ENT concluded the end of Q4 with a solid balance sheet and an equity ratio of 37.9%.

“In the next period, our goal is to keep the leading position in the operator segment, R&D and services, and to strengthen the position in the Digital Society segment. Although a decline in the operators’ investments in network modernization is noticeable, we believe that to ensure the quality of services to end users, the operators will increase their investments in the future,“ said Gordana Kovačević, president of Ericsson Nikola Tesla.