Industry Report Computer programming, consultancy and related activities 2014 Bulgaria seenews.com/reports This industry report is part of your subcription access to SeeNews | seenews.com/subscription CONTENTS I. KEY INDICATORS II. INTRODUCTION III. REVENUES IV. EXPENSES V. PROFITABILITY VI. EMPLOYMENT 1 SeeNews Industry Report BULGARIA NUMBER OF COMPANIES IN COMPUTER PROGRAMMING, CONSULTANCY AND RELATED ACTIVITIES INDUSTRY BY SECTORS SECTOR 2014 2013 2012 I. KEY INDICATORS OTHER INFORMATION TECHNOLOGY AND 2,727 2,468 2,038 COMPUTER SERVICE ACTIVITIES The Computer programming, consultancy and related COMPUTER PROGRAMMING ACTIVITIES 1,770 1,560 1,324 activities industry in Bulgaria was represented by 6,123 COMPUTER CONSULTANCY ACTIVITIES 979 831 659 companies at the end of 2014, compared to 5,437 in the COMPUTER FACILITIES MANAGEMENT 647 578 485 previous year and 4,506 in 2012. ACTIVITIES The industry's net profit amounted to BGN 324,980,000 in 2014. III. REVENUES The industry's total revenue was BGN 2,902,270,000 in The total revenue in the industry was BGN 2,902,270,000 in 2014, up by 17.05% compared to the previous year. 2014, BGN 2,479,510,000 in 2013 and 2,217,277,000 in 2012. The combined costs of the companies in the Computer programming, consultancy and related activities industry Total revenue reached BGN 2,533,335,000 in 2014, up by 15.06% year-on- Net sales revenue year. 3,000,000,000 2,902,270,000 The industry's total revenue makes up 3.76% to the 2,750,000,000 country's Gross domestic product (GDP) in 2014, compared 2,479,510,000 2,733,610,000 to 3.26% for 2013 and 2.95% in 2012. 2,500,000,000 2,217,277,000 2,250,000,000 2,364,791,000 A total of 32,354 people were employed in the Computer programming, consultancy and related activities industry at 2,000,000,0002,118,689,000 the end of 2014, compared to 34,891 in 2013 and 27,137 in 1,750,000,000 2012. 1,500,000,000 BGN Most of the companies in the industry are based in Sofia, 1,250,000,000 followed by Varna and Plovdiv. 1,000,000,000 750,000,000 II. INTRODUCTION 500,000,000 250,000,000 In 2014 the companies in the Computer programming, consultancy and related activities industry numbered 6,123, 0 distributed in 4 sectors. 2012 2013 2014 979 The companies in the Computer programming, consultancy and related activities market of Bulgaria earned combined net sales revenues of BGN 2,733,610,000 in 2014. 1,770 In annual terms, sales marked a rise of 15.60% compared to 2013. In comparison to 2012 they grew by 29.02%. In 2013 647 sales went up by 11.62% year-on-year. The Computer programming, consultancy and related activities industry total revenue make up 3.76% to the country's GDP in 2014, compared to 3.26% for 2013 and 2.95% in 2012. 2,727 Other information technology and computer service activities Computer programming activities Computer consultancy activities Computer facilities management activities In 2013 there were a total of 5,437 companies operating in the industry. In 2012 their number totalled 4,506. 2 SeeNews Industry Report Share 3.76% 3.8 INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS 3.42 3.26% 31.25% 3.042.95% 13.42% 2.66 2.28 1.9 4.76% 1.52 1.14 0.76 0.38 0 2012 2013 2014 50.57% Other information technology and computer service activities In 2014 the Computer programming, consultancy and related Computer programming activities activities industry contributed to GDP BGN 2,526,853,000 in Computer consultancy activities Gross value added (GVA) accounting for 1.76% of the total for the country's economy. Computer facilities management activities In the previous year, the industry's GVA amounted BGN The highest growth, of 29.81%, was recorded by Computer 2,158,702,000, accounting for 1.60% of the total for the consultancy activities. There was no industry's sector to country in 2013. In 2012 the GVA of the Computer report a drop in net sales revenues. programming, consultancy and related activities was BGN 1,882,533,000, or 1.47% of the GVA for the country's TOP COMPANIES' REVENUE BY SEGMENTS SEGMENT COMPANY TOTAL REVENUE NET SALES economy. (BGN) REVENUE (BGN) COMPUTER FACILITIES MANAGEMENT ACTIVITIES GVA BY SECTORS LUKOYL TEHNOLODZHI SERVISIZ BULGARIA 28,910,000 21,258,000 RANK SECTOR BGN SHARE OF THE EOOD COUNTRY'S GVA (%) MEGALAN OOD 6,275,000 6,229,000 1 OTHER INFORMATION TECHNOLOGY AND 1,222,016,000 0.85 SIS TEHNOLOGIYA AD 5,676,000 5,536,000 COMPUTER SERVICE ACTIVITIES OTHER INFORMATION TECHNOLOGY AND COMPUTER SERVICE ACTIVITIES 2 COMPUTER PROGRAMMING ACTIVITIES 863,330,000 0.60 HEWLETT-PACKARD GLOBAL DELIVERY 259,744,000 254,067,000 3 COMPUTER CONSULTANCY ACTIVITIES 324,674,000 0.23 BULGARIA CENTER EOOD 4 COMPUTER FACILITIES MANAGEMENT 116,833,000 0.08 TELELINK EAD 72,903,000 65,812,000 ACTIVITIES SKRILL BULGARIA EOOD 42,843,000 42,827,000 COMPUTER CONSULTANCY ACTIVITIES We expect, based on the trend in the last three years, the total AY BI EM BULGARIA EOOD 59,220,000 53,713,000 revenue of the Computer programming, consultancy and DZZD KONSORTSIUM PROKON 18,660,000 18,541,000 related activities industry to change at a compound annual TSAPK PROGRES GRUP AD 17,720,000 17,683,000 growth rate (CAGR) of 14.41% in 2015. COMPUTER PROGRAMMING ACTIVITIES SAP LABS BULGARIA EOOD 53,208,000 53,140,000 NET SALES REVENUE BY SECTORS RANK SECTOR NET SALES REVENUE TELERIK AD 48,272,000 45,554,000 (BGN) INFOPARTNERS OOD 28,772,000 28,772,000 1 OTHER INFORMATION TECHNOLOGY AND COMPUTER 1,382,458,000 SERVICE ACTIVITIES The top 10 companies in terms of total revenue in Computer 2 COMPUTER PROGRAMMING ACTIVITIES 854,332,000 programming, consultancy and related activities accounted 3 COMPUTER CONSULTANCY ACTIVITIES 366,723,000 for 22.21% of the industry's total in 2014, 24.54% in 2013 and 4 COMPUTER FACILITIES MANAGEMENT ACTIVITIES 130,097,000 29.20% in 2012. TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE INDUSTRY RANK COMPANY TOTAL REVENUE NET SALE (BGN) REVENUE (BGN) 1 HEWLETT-PACKARD GLOBAL DELIVERY 259,744,000 254,067,000 BULGARIA CENTER EOOD 2 TELELINK EAD 72,903,000 65,812,000 3 AY BI EM BULGARIA EOOD 59,220,000 53,713,000 3 SeeNews Industry Report 4 SAP LABS BULGARIA EOOD 53,208,000 53,140,000 INFORMATION TECHNOLOGY AND COMPUTER SERVICE 5 TELERIK AD 48,272,000 45,554,000 ACTIVITIES WERE: 6 SKRILL BULGARIA EOOD 42,843,000 42,827,000 COMPANY BGN 7 LUKOYL TEHNOLODZHI SERVISIZ BULGARIA 28,910,000 21,258,000 HEWLETT-PACKARD GLOBAL DELIVERY BULGARIA CENTER EOOD 259,744,000 EOOD TELELINK EAD 72,903,000 8 INFOPARTNERS OOD 28,772,000 28,772,000 SKRILL BULGARIA EOOD 42,843,000 9 ORAKAL IYST SENTRAL YURAP LIMITED 25,807,000 25,642,000 ORAKAL IYST SENTRAL YURAP LIMITED BULGARIA 25,807,000 BULGARIA HYULET-PAKARD BULGARIA EOOD 23,990,000 10 FADATA AD 24,851,000 20,490,000 VISTEON ELEKTRONIKS BULGARIA EOOD 21,454,000 INFORMATSIONNO OBSLUZHVANE AD 20,739,000 The total revenues of the top 10 companies in the Computer ENIGMA SOFTUEAR GRUP BULGARIA OOD 20,411,000 programming, consultancy and related activities were 0.83% RENTABILIUEB BULGARIA EOOD 20,368,000 of GDP in 2014, compared to 0.80% for 2013 and 0.86% in PARAFLOU KOMUNIKEYSHANS OOD 19,928,000 2012. The 10 largest companies in terms of total revenue in sector The top 10 by assets in the Computer programming, Computer programming, consultancy and related activities consultancy and related activities industry made up BGN earned total revenue of BGN 528,187,000 and accounted for 523,278,000, or 19.14% of the total net sales revenue. 18.20% of the industry's total revenue. TOP 10 BY TOTAL ASSETS IN THE INDUSTRY TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET RANK COMPANY BGN COMPUTER CONSULTANCY ACTIVITIES WERE: 1 TELERIK AD 126,865,000 COMPANY BGN 2 SKRILL BULGARIA EOOD 79,931,000 AY BI EM BULGARIA EOOD 59,220,000 3 TELELINK EAD 77,676,000 DZZD KONSORTSIUM PROKON 18,660,000 4 HEWLETT-PACKARD GLOBAL DELIVERY BULGARIA 68,428,000 TSAPK PROGRES GRUP AD 17,720,000 CENTER EOOD AY TI OU EOOD 16,872,000 5 AY BI EM BULGARIA EOOD 51,686,000 KODIKS BULGARIA EAD 14,089,000 6 SIRMA SOLYUSHANS AD 42,493,000 BULPROS KONSULTING AD 12,458,000 7 MONS MENIDZHMANT EOOD 41,286,000 ADASTRA BULGARIA EOOD 12,338,000 8 VEGA KONSULT 11 EOOD 38,969,000 TSAPK PROGRES OOD 9,100,000 9 FADATA AD 28,472,000 INTELIDZHANT SISTEMS BULGARIA EOOD 7,831,000 10 NET INFO AD 28,226,000 AVANKUEST YUKEY LIMITID - KLON BULGARIA 7,741,000 TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN The 10 largest companies in terms of total revenue in sector OPERATING REVENUE IN COMPUTER PROGRAMMING, Computer programming, consultancy and related activities CONSULTANCY AND RELATED ACTIVITIES RANK COMPANY Y/Y GROWTH earned total revenue of BGN 176,029,000 and accounted for 1 MONS MENIDZHMANT EOOD 330166.67% 6.07% of the industry's total revenue. 2 DZZD BALKAN GOLD - KONTRAKS 53600.00% 3 NAVIGARD EOOD 48300.00% TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY 4 INTEKRITI EOOD 28325.00% COMPUTER PROGRAMMING ACTIVITIES WERE: COMPANY BGN 5 ADELLE OOD 22500.00% SAP LABS BULGARIA EOOD 53,208,000 6 SATO EOOD 19500.00% TELERIK AD 48,272,000 7 PIKLAUD EOOD 17350.00% INFOPARTNERS OOD 28,772,000 8 UEB ROBOTIKS EOOD 9711.54% FADATA AD 24,851,000 9 PROKOD EOOD 9200.00% HAOS SOFTUER OOD 22,876,000 10 AZUKEN EOOD 8900.00% MM SOLUSHANS AD 21,974,000 SIRMA SOLYUSHANS AD 20,856,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY EKSPIRIAN BULGARIA EAD 17,906,000 COMPUTER FACILITIES MANAGEMENT ACTIVITIES WERE: TEHNOLOGIKA EAD 14,719,000 COMPANY BGN LUKOYL TEHNOLODZHI SERVISIZ BULGARIA EOOD 28,910,000 AKSUEY BULGARIA EOOD 13,996,000 MEGALAN OOD 6,275,000 SIS TEHNOLOGIYA AD 5,676,000 The 10 largest companies in terms of total revenue in sector METODIYA AD 5,079,000 Computer programming, consultancy and related activities TRAFIK SISTEMI EOOD 4,984,000 earned total revenue of BGN 267,430,000 and accounted for 9.21% of the industry's total revenue.