Ericsson NT publishes FY 2021 results

In 2021, Ericsson NT recorded an increase in sales of 8.9% YoY, an EBITDA increase of 52.1%, and a net profit increase of 87.6%, amounting to HRK 177.3m.

In 2021, Ericsson Nikola Tesla recorded a sales revenue of HRK 2.2bn, an increase of 8.9% YoY (or HRK 180.9m). This increase was recorded on all market segments (domestic, export, and Ericsson). Of the total sales revenue, the domestic market accounted for 47.7%, services to Ericsson accounted for 40.8%, while other export markets accounted for the remaining 11.5%. On the domestic market, sales increased by 13.4% YoY and amounted to HRK 1.05bn. This was supported by the signing of three contracts with HT, as well as the focus on activities related to 5G technology implementation. With A1 Hrvatska, the Company signed an important multi-year agreements in 2021. In the export markets, revenue grew by 8% YoY, amounting to HRK 253.2m. This was supported by the signing of contracts with HT Mostar in Q4 2021 for the upgrade and expansion of LTE RAN network, expansion of transmission network and software upgrade, and expansion of wireline switching system. In the Ericsson market, sales revenue amounted to HRK 899.5m, growing by 4.4% YoY.

Sales breakdown (HRKm)

Gross profit increased by 45.9% (or HRK 79.9m), as a result of business mix, lower transition and transformation costs, and the effect of operational and efficiency programs. This would mean that the gross margin also increased to 11.5%, an increase of 2.9 p.p. YoY.

EBITDA increased 52.1% and amounted to HRK 243.5m. During the year, the Company employed 234 new employees (end of period 2021 vs. end of period 2020), an increase of 7.23%. At the same time, the average monthly gross salaries increased from HRK 21,881 to HRK 22,749, growing by 3.96%. Selling and administrative expenses were up 10.6% YoY, amounting to HRK 92.7m. Together, this had a strong influence on the increase of EBIT, which grew by 78.6% YoY (or HRK 82m), amounting to HRK 186.4m.

Net financial result during the year amounted to HRK 7,764m, an increase of 246.5% YoY, as a result of positive exchange differences and interest income. In total, the Company’s net income increased 87.6%, amounting to HRK 177.3m.

Cash and cash equivalents, at the end of 2021, amounted to HRK 510.5m. This cash amount composes 42.4% of total assets, as compared to HRK 314m (or 31.6% of total assets in 2020). This creates a strong financial cushion for the Company for any developments.

The total assets amounted to HRK 1.2bn, an increase of 21.1% YoY. This increase is mainly contributed to the work-in-progress (WIP) conditioned by the contract execution dynamics, new receivables, as well as a strong increase in cash and cash equivalents.

Ericsson Key Financials (HRKm)

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