Yesterday, Ericsson Nikola Tesla held a conference for media and analysts regarding the Group’s FY 2022 results. In short, in 2022 Ericsson NT reported an increase in sales revenue of 1.7% YoY, an EBITDA decrease of 27%, and a net profit of EUR 15.8m, a decrease of 32.8% YoY.
Ericsson NT’s sales revenue amounted to EUR 298m in FY 2022, representing an increase of 1.7% YoY, mainly driven by the increase in services to Ericsson and sales in the Digital Society segment in the domestic market. Out of the total sales, the domestic market accounted for 43.3%, services to Ericsson accounted for 45.7%, while other export markets accounted for 11%. On the domestic market, sales decreased by 7.7% and amounted to EUR 128.9m. Out of these, Ericsson notes continued cooperation with HT, on delivering 5G and fiber optic solutions, based on multi-year agreements. Further, all FY targets regarding fixed and mobile telecommunications were met. Also, the contracts co-financed by the European Structural and Investment Funds are ongoing as planned. With A1 Hrvatska, they are also continuing their activities related to the expansion of the 5G network with a few other projects on top of that that are co-financed by the Operational Programme Competitiveness and Cohesion funds. Nevertheless, due to the negative global trends, such as rising energy prices, the operators had adjusted the investment dynamics, which directly influenced Ericsson’s sales revenue slightly offsetting the mentioned growth. Meanwhile, revenue from services to Ericsson amounted to EUR 98.3m, a 14.6% increase YoY. Finally, sales from other export markets amounted to EUR 32.8m, a 2.3% YoY decrease.
Breaking the sales down by segments, the Networks segment increased by 8.3%, to EUR 137.6m, the Digital Services segment increased by 12.5%, to EUR 85.7m, while at the same time, Managed Services decreased by 15.6%, to EUR 73.8m. Gross profit amounted to EUR 24.4m, a decrease of 27.7% YoY, mainly as a result of higher costs of termination of the eHealth implementation project in Belarus, as well as the increase in salaries, prices of services, energy, raw materials, and materials. Gross margin also decreased to 8.2%, down 3.3 p.p. YoY. Selling and administrative expenses increased by 2.5% YoY, amounting to EUR 12.6m, with the share of these expenses in the sales revenue at the previous year’s level of 4.2%.
Sales breakdown by market (EURm)
As a result of the mentioned higher expenses, EBITDA decreased by 27% YoY and amounted to EUR 23.6m. In Q4 EBITDA amounted to EUR 5m, noting a YoY decrease of 44.7%, with the EBITDA margin decreasing by 4.7 p.p. to 5.4%.
Moving further, financial income amounted to EUR 1m, while the financial expenses amounted to EUR 464.5k, leading to a net financial result of EUR 500k – down from EUR 1m. Lower net financial results occurred mainly as a result of lower FX differences.
The positive net financial result did somewhat offset the negative impact of the higher expenses lowering the EBITDA, but EBT still recorded a notable decrease, lowered by 31.9% to EUR 17.6m. The income tax for the period amounted to EUR 1.7m. Finally, the net profit of the Company decreased by 32.8% and amounted to EUR 15.8m. On a Q4 2022 basis, the net profit decreased to EUR 3.3m, a decrease of 58.4% YoY. This would also mean that in 2022, the net profit margin decreased by 2.7 p.p. and amounted to 5.3%, while in Q4 2022 it amounted to 5.7%, a decrease of 3.6 p.p. YoY.
Ericsson NT key financials (FY 2022 vs. FY 2021, EURm)
Looking over at the balance sheet, the total assets increased by 4.3% YoY and amounted to EUR 166.6m, as a result of higher short-term assets, which make up the majority of the Group’s total assets. Cash and cash equivalents amounted to EUR 74m (including short-term fin. assets), an increase of 9.2%, in line with the Company’s planned regular activities. Looking at the other side of the balance sheet, the total equity amounted to EUR 57.8m, an increase of 7.8% YoY, mainly as a result of higher retained earnings. Meanwhile, short-term liabilities increased to EUR 58.4m, an increase of 15.3% YoY, mainly coming from higher short-term liabilities to the suppliers.
In 2023, the Group expects the trend of growing demand for ICT solutions to continue. Therefore, the Company continues to implement its strategy, with an emphasis on investing in research, development and implementation of modern ICT solutions, the development of employees’ knowledge and skills, and its own digital transformation.
Yesterday in Split, the reconstruction project for Marjan Hotel was presented, with an estimated cost of more than EUR 100m. Adris also commented on its plans to invest EUR 480m in its entire tourism segment by 2025.
According to Adris and the media, The Group plans on investing an additional EUR 480m in the tourism part of its business by 2025. Because of these investments, Maistra will become the largest national tourism company in the luxury segment, positioned in growing and internationally recognizable destinations – Rovinj, Dubrovnik, and Zagreb (as well as Split, if we include the reconstruction of Marjan Hotel). The Group said that along with the investment and renovation of Panorama and Westin hotels in Zagreb, the investment into the renovation of the Marjan Hotel, which will be worth more than EUR 100m, will be one of the largest single investments in Croatian tourism.
According to the architectural Studio 3LHD employed for the project, the concept of the complete reconstruction of Hotel Marjan retains all the urban settings of Lovra Perković’s original project. It consists of a horizontal three-story base with two atriums around which the hotel’s public spaces line up and a vertical one that retains the functions as defined by the original project.
The project was conceived in several points, with the ultimate goal of fitting the building into the views of the city as much as possible. This is to be achieved by creating a pedestrian connection with neighboring plots, opening the atrium to bring light to the ground floor, ensuring an optimal view of the tower, and adding attractive contents to the roof, among many other improvements. The entire reconstruction is to be realized in the dimensions of the existing building.
As such, Hotel Marjan will have 5 stars, 285 accommodation units, and will spread over a total of 15 floors from the basement to the vertical of the tower, which will only have the accommodation units, as compared to other floors. A garage of 285 parking spaces will be located in the basement. Public spaces are arranged from the ground floor to the lower part of the roof floor. The facilities that serve to activate the hotel are two atriums on the ground floor, the larger of which is richly planted with Mediterranean plant species and will serve as a living room to which the two restaurants on the ground floor, with a total of 650 seats and the hotel lobby are orientated.
The congress hall will be divided into three smaller ones and will be able to accommodate a total of 500 people. Other public facilities are the closed part of the wellness area, which will be located on the first and second floors and will cover a total area of 1,700 m2. Wellness will consist of an indoor pool of 140 m2, an exercise area, and a spa area with saunas, relaxation areas, and massage rooms.
On the third floor, which is also the roof of the lower part, there will be an additional 1,700 m2 open part of the wellness area, which will have two open pools with associated sunbeds and catering facilities. A fine-dining restaurant will be located on the roof of the lower part, which will be accessible, apart from the hotel, also through a separate entrance, and will be able to accommodate a total of 100 guests. It will also have a covered terrace with a view towards Split.
The accommodation units will be located on the upper floors and almost all will have a view of the sea. Those in the lower part of the building will have contact with the outside space in the form of terraces or balconies, while the rooms and apartments in the tower will be a contemporary interpretation of the original project, but in which each of them will turn into a loggia by opening large sliding walls.
In 2022, the total GWPs of the Slovenian insurance sector increased by 7.3% YoY. In terms of the segments, the Non-life insurance segment grew by 8.52% YoY, while the Life Insurance segment increased by 4.2%.
Recently, the Slovenian Insurance Association published the latest data on the developments recorded by the Slovenian Insurance sector, for the entire of 2022. In the report, we can see that the insurance sector is on an upward trajectory, with increases recorded in both the Life and Non-life segments. In total, the gross written premiums (GWPs) of the Slovenian insurance sector increased by 7.3% YoY (or EUR 190.4m) and 8.7% MoM (or EUR 225.5m) and amounted to EUR 2.81bn.
Breaking this growth by segments, and starting with the Non-Life insurance, the total GWPs in this segment grew by 8.52% YoY (or EUR 159.2m) and 8.2% MoM (or EUR 153.4m) and amounted to EUR 2.03bn. This would mean that out of the total, 72.3% of the GWPs in the Slovenian insurance sector go to the Non-life segment. Meanwhile, the Life insurance sector recorded GWP growth of 4.2% YoY (or EUR 31.1m) and 10.2% MoM (or EUR 72m), which amounted to EUR 778m.
Looking at the Non-life insurance by policy, on a yearly basis and in absolute terms, the most considerable growth was recorded by Land motor vehicles insurance, which grew by EUR 37.5m (or 11.1%), followed by Health insurance, with the growth of EUR 32.1m (or 5%), Motor vehicle liability insurance, which increased by EUR 24.9m (or 9.3%), and Other damage to property insurance, which increased by EUR 22.8m (or 12.7%). No notable decline except the slight EUR 184.5k decrease in the Liability for ships insurance GWPs was recorded. On the other hand, on an MoM basis, the most significant increase was recorded by Health insurance GWPs, which increased by EUR 59.9m, or 9.7%, followed by a EUR 26.5m (or 7.6%) increase in Land motor vehicles insurance, as well as the EUR 21.1m (or 7.8%) increase in Motor vehicle liability insurance.
Moving on to the Life insurance, the largest GWP increase in this segment was recorded by the Unit-linked life insurance, which increased by EUR 13.6m, or 4.9% YoY, and EUR 25.1m (or 9.4%) MoM. Life assurance GWPs also recorded a slight increase of EUR 763.8k (or 0.3%) MoM, but a more notable EUR 24.7m (or 9.2%) increase YoY.
Changes recorded by the Slovenian insurance sector in 2022 (YoY, EUR)
Source: Slovenian Insurance Association, InterCapital Research
In all of these policies’ cases, we can see two things: first of all, the cyclicality of the industry, as some policies are preferred at certain times compared to others, which is to be expected. After all, Health insurance policies are usually taken in larger quantities in the winter than in summer due to a larger presence of diseases, various vehicle insurances are more often taken during the summer when people travel more, and so on.
What all of this data can show us though, is that despite all the macroeconomic hurdles we have witnessed in 2022, the requirements for insurance in Slovenia are still quite large, and as such the sector is still growing and expanding. This trend is quite positive for Slovenian insurance companies in particular, such as Triglav and Sava Re and thus if it continues it should be supportive of further expansion of their overall revenues, but also profitability if the continued growth in the Non-life segment continues.
Here you can find the dates for the upcoming events of the regional companies.
| wdt_ID | Date | Ticker | Announcement | Country |
|---|---|---|---|---|
| 14 | 26.2.2023 | SNN | Nuclearelectrica General Assembly Meeting | Romania |
| 15 | 27.2.2023 | TTS | Transport Trade Services 2022 dividend proposal | Romania |
| 16 | 27.2.2023 | TTS | Transport Trade Services Preliminary Results for 2022 | Romania |
| 17 | 27.2.2023 | TEL | Transelectrica Preliminary Results for 2022 | Romania |
| 18 | 27.2.2023 | AQ | Aquila Preliminary Results for 2022 | Romania |
| 19 | 27.2.2023 | ALR | ALRO Preliminary Results for 2022 | Romania |
| 20 | 27.2.2023 | COTE | Conpet Preliminary Results for 2022 | Romania |
| 21 | 27.2.2023 | ATPL | Atlantska Plovidba Supervisory Board Meeting | Croatia |
| 22 | 27.2.2023 | ARNT | Arena Hospitality Group Supervisory Board Meeting | Croatia |
| 23 | 28.2.2023 | TGN | Transgaz Preliminary Results for 2022 | Romania |
| 24 | 28.2.2023 | DIGI | Digi Preliminary Results for 2022, Conference Call | Romania |
| 25 | 28.2.2023 | AQ | Aquila Preliminary Results for 2022 Conference Call | Romania |
| 26 | 28.2.2023 | ATGR | Atlantic Grupa Q4 2022 results, unaudited Financial Report for 2022 | Croatia |
| 27 | 28.2.2023 | ONE | One United Properties Preliminary 2022 Results | Romania |
| 28 | 28.2.2023 | WINE | Purcari Preliminary Results for 2022 | Romania |
| 29 | 28.2.2023 | SNG | Romgaz Preliminary Results for 2022 | Romania |
| 30 | 28.2.2023 | FP | Fondul Proprietatea Preliminary Results for 2022, Conference Call | Romania |
| 31 | 28.2.2023 | KOEI | Končar Q4 2022 Results, Unaudited Financial Report for 2022 | Croatia |
| 32 | 28.2.2023 | RIVP | Valamar Riviera Q4 2022 Results, 2022 Audited Annual Report | Croatia |
| 33 | 28.2.2023 | PODR | Podravka Unaudited Financial Statements for 2022 | Croatia |
| 34 | 28.2.2023 | ATPL | Atlantska Plovidba Management Board Meeting, Unaudited 2022 Annual Report | Croatia |
| 35 | 28.2.2023 | ARNT | Arena Hospitality Group Q4 2022 Results | Croatia |
| 36 | 28.2.2023 | ARNT | Arena Hospitality Group 2022 Annual Report | Croatia |
| 37 | 28.2.2023. | SPAN | SPAN Q4 2022 Results | Croatia |
Due to the nature of these events, they are subject to change (might be postponed or canceled).