In the first 9m of 2021, sales increased by 6.2% YoY, EBITDA increased by 47.8% and net profit increased by 70.9%.
In the first 9 months of 2021, Ericsson Nikola Tesla reported an increase in sales of 6.2% YoY, amounting to HRK 1.53bn.
Market-wise, in the domestic market, sales amounted to HRK 729.8m up by 9.8 YoY. In cooperation with HT, they have enabled the commercial use of 5G technology in the existing spectrum significantly before 5G frequencies were allocated. In export markets (excluding services to Ericsson) sales amounted to HRK 157m, noting an increase of 7.7% YoY. In addition to the negative impact of COVID-19 pandemic, the political and economic crisis in certain markets, primarily in Belarus and Bosnia and Herzegovina, additionally aggravates business performance. In Ericsson market, sales amounted to HRK 646.2m, up by 2.1% YoY.
On the operating expenses side, one can note an increase of 2.7% YoY reaching HRK 1.42bn. The above-mentioned results led to a significantly higher EBITDA (+47.8% YoY) of HRK 175.3m. Such a result also led to an improvement of EBITDA margin by 3.2 p.p. YoY (to 11.3%). Going further down the P&L, operating profit reached HRK 132.16m (+73.3%).
In the first 9 months, net financial result amounted to HRK 3.2m (vs HRK -1.11m). The better outcome could be mostly attributed to relatively favorable FX result.
Meanwhile, the Group reported a strong increase in net profit of as much as 70.9%, amounting to HRK 114.73m. Such a result puts the profit margin at 7.4% (+2.8 p.p. YoY).
