Telecommunications equipment manufacturer Ericsson Nikola Tesla reported a consolidated net profit of 68.4 million kuna (€9.1 million) in the first half of 2022, a decrease of 32.6 percent from the same period in 2021, the company said in their financial report released on Friday. 

The total consolidated revenue was 1.09 billion kuna, up by 6.0 percent year-on-year, while total expenditure increased by 11.4 percent to slightly over 1 billion kuna.

Sales revenue rose by 4.7 percent to 1.06 billion kuna, mostly owing to the increase in sales of services to Ericsson. Gross margin decreased by 9.7 percent as a result  of sanctions on the Belarusian market, the increase in wages in response to inflationary pressure, and the increase in prices of energy, raw materials and materials, while operating profit fell by 35.6 percent to 76.9 million kuna.

Cash flow from operating activities was 20.5 million kuna, in line with expectations given the market environment.

(€1 = 7.50 kuna)