Industry Report Computer programming, consultancy and related activities 2016 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 In 2015 there were a total of 6,851 companies operating in the industry. In 2014 their number totalled 6,123. I. KEY INDICATORS NUMBER OF COMPANIES IN COMPUTER PROGRAMMING, The Computer programming, consultancy and related CONSULTANCY AND RELATED ACTIVITIES INDUSTRY BY SECTORS activities industry in Bulgaria was represented by 7,567 SECTOR 2016 2015 2014 companies at the end of 2016, compared to 6,851 in the OTHER INFORMATION TECHNOLOGY AND 3,294 3,049 2,727 previous year and 6,123 in 2014. COMPUTER SERVICE ACTIVITIES COMPUTER PROGRAMMING ACTIVITIES 2,226 1,998 1,770 The industry's net profit amounted to BGN 413,812,000 in COMPUTER CONSULTANCY ACTIVITIES 1,280 1,099 979 2016. COMPUTER FACILITIES MANAGEMENT 767 705 647 ACTIVITIES The industry's total revenue was BGN 4,289,939,000 in 2016, up by 13.16% compared to the previous year. The combined costs of the companies in the Computer III. REVENUES programming, consultancy and related activities industry reached BGN 3,823,347,000 in 2016, up by 13.26% year-on- The total revenue in the industry was BGN 4,289,939,000 in year. 2016, BGN 3,791,169,000 in 2015 and 2,902,270,000 in 2014. The industry's total revenue makes up 4.63% to the country's Gross domestic product (GDP) in 2016, compared Total revenue to 4.24% for 2015 and 3.38% in 2014. Net sales revenue 4,289,939,000 A total of 42,710 people were employed in the Computer 4,400,000,000 programming, consultancy and related activities industry in 4,000,000,000 3,791,169,000 2016, compared to 38,714 in 2015 and 32,354 in 2014. 4,102,243,000 3,600,000,000 Most of the companies in the industry are based in Sofia, 3,584,603,000 3,200,000,000 followed by Varna and Plovdiv. 2,902,270,000 2,800,000,000 2,733,610,000 II. INTRODUCTION 2,400,000,000 BGN 2,000,000,000 In 2016 the companies in the Computer programming, 1,600,000,000 consultancy and related activities industry numbered 7,567, distributed in 4 sectors. 1,200,000,000 800,000,000 400,000,000 INDUSTRY STRUCTURE BY SECTORS AND NUMBER OF COMPANIES 0 1,280 2014 2015 2016 The companies in the Computer programming, consultancy 2,226 and related activities market of Bulgaria earned combined net sales revenues of BGN 4,102,243,000 in 2016. 767 In annual terms, sales marked a rise of 14.44% compared to 2015. In comparison to 2014 they rose by 50.07%. In 2015 sales increased by 31.13% year-on-year. The Computer programming, consultancy and related activities industry total revenue make up 4.63% to the country's GDP in 2016, compared to 4.24% for 2015 and 3.38% in 2014. 3,294 Other information technology and computer service activities Computer programming activities Computer consultancy activities Computer facilities management activities 2 SeeNews Industry Report Share in GDP 4.8 4.63% INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS 4.4 4.24% 31.67% 4 13.84% 3.63.38% 3.2 2.8 2.4 5.50% 2 1.6 1.2 0.8 0.4 0 2014 2015 2016 48.99% Other information technology and computer service activities In 2016 the Computer programming, consultancy and related Computer programming activities activities industry contributed to GDP BGN 3,694,783,000 in Computer consultancy activities Gross value added (GVA) accounting for 2.42% 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 20.41%, was recorded by Computer 3,199,169,000, accounting for 2.07% of the total for the programming activities. There was no industry's sector to country in 2015. In 2014 the GVA of the Computer report a drop in net sales revenues. programming, consultancy and related activities was BGN 2,526,853,000, or 1.76% of the GVA for the country's TOP COMPANIES' REVENUE BY SECTORS SEGMENT COMPANY TOTAL REVENUE NET SALES economy. (BGN) REVENUE (BGN) COMPUTER PROGRAMMING ACTIVITIES GVA BY SECTORS PROGRESS SOFTWARE EAD 81,536,000 72,912,000 RANK SECTOR BGN SHARE OF THE COUNTRY'S SAP LABS BULGARIA EOOD 65,716,000 65,602,000 GVA (%) EXPERIAN BULGARIA EAD 32,778,000 32,778,000 1 OTHER INFORMATION TECHNOLOGY AND 1,704,833,000 1.12 OTHER INFORMATION TECHNOLOGY AND COMPUTER SERVICE ACTIVITIES COMPUTER SERVICE ACTIVITIES HEWLETT-PACKARD GLOBAL DELIVERY 292,814,000 292,514,000 2 COMPUTER PROGRAMMING ACTIVITIES 1,279,832,000 0.84 BULGARIA CENTER EOOD 3 COMPUTER CONSULTANCY ACTIVITIES 507,866,000 0.33 ALSO BULGARIA EOOD 161,024,000 158,611,000 4 COMPUTER FACILITIES MANAGEMENT 202,252,000 0.13 PAYSAFE BULGARIA EOOD 82,157,000 82,126,000 ACTIVITIES COMPUTER CONSULTANCY ACTIVITIES IBM BULGARIA EOOD 115,891,000 114,785,000 We expect, based on the trend in the last three years, the total CAD R&D CENTRE PROGRESS GROUP AD 40,419,000 37,456,000 revenue of the Computer programming, consultancy and BULPROS CONSULTING AD 24,327,000 24,243,000 related activities industry to change at a compound annual COMPUTER FACILITIES MANAGEMENT ACTIVITIES growth rate (CAGR) of 21.58% in 2017. TEHNOLODZHI SERVISIZ BULGARIA EOOD 30,763,000 24,298,000 CEZ INFORMATION AND 19,144,000 19,138,000 COMMUNICATION TECHNOLOGIES NET SALES REVENUE BY SECTORS BULGARIA EAD RANK SECTOR NET SALES REVENUE (BGN) DZZD KONSORTSIUM YU TI AY GRUP - 14,897,000 14,281,000 1 OTHER INFORMATION TECHNOLOGY AND COMPUTER 2,009,663,000 INOVATIVNI TRAFIK SISTEMI SERVICE ACTIVITIES 2 COMPUTER PROGRAMMING ACTIVITIES 1,299,331,000 3 COMPUTER CONSULTANCY ACTIVITIES 567,678,000 The top 10 companies in terms of total revenue in Computer 4 COMPUTER FACILITIES MANAGEMENT ACTIVITIES 225,571,000 programming, consultancy and related activities accounted for 23.94% of the industry's total in 2016, 24.27% in 2015 and 22.21% in 2014. 3 SeeNews Industry Report FADATA EOOD 26,350,000 TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE SBTECH (GLOBAL) LIMITED - SUBSIDIARY BULGARIA BRANCH 24,363,000 INDUSTRY MUSALA SOFT AD 21,402,000 RANK COMPANY TOTAL REVENUE NET SALE (BGN) REVENUE (BGN) 1 HEWLETT-PACKARD GLOBAL DELIVERY 292,814,000 292,514,000 BULGARIA CENTER EOOD The 10 largest companies in terms of total revenue in sector 2 ALSO BULGARIA EOOD 161,024,000 158,611,000 Computer programming activities earned total revenue of 3 IBM BULGARIA EOOD 115,891,000 114,785,000 BGN 367,552,000 and accounted for 8.57% of the industry's 4 PAYSAFE BULGARIA EOOD 82,157,000 82,126,000 total revenue. 5 PROGRESS SOFTWARE EAD 81,536,000 72,912,000 6 VMWARE BULGARIA EOOD 71,365,000 71,365,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR OTHER 7 SAP LABS BULGARIA EOOD 65,716,000 65,602,000 INFORMATION TECHNOLOGY AND COMPUTER SERVICE 8 TELELINK BUSINESS SERVICES EAD 63,736,000 59,900,000 ACTIVITIES WERE: COMPANY BGN 9 VISTEON ELECTRONICS BULGARIA EOOD 52,530,000 52,523,000 HEWLETT-PACKARD GLOBAL DELIVERY BULGARIA CENTER EOOD 292,814,000 10 CAD R&D CENTRE PROGRESS GROUP AD 40,419,000 37,456,000 ALSO BULGARIA EOOD 161,024,000 PAYSAFE BULGARIA EOOD 82,157,000 VMWARE BULGARIA EOOD 71,365,000 The total revenues of the top 10 companies in the Computer TELELINK BUSINESS SERVICES EAD 63,736,000 programming, consultancy and related activities were 1.11% of VISTEON ELECTRONICS BULGARIA EOOD 52,530,000 GDP in 2016, compared to 1.03% for 2015 and 0.75% in 2014. LANET EOOD 38,318,000 The top 10 by assets in the Computer programming, LIREX BG OOD 36,633,000 consultancy and related activities industry made up BGN HP INC BULGARIA EOOD 36,144,000 941,829,000, or 22.96% of the total net sales revenue. ORACLE EAST CENTRAL EUROPE LIMITED - BRANCH BULGARIA 29,434,000 TOP 10 BY TOTAL ASSETS IN THE INDUSTRY RANK COMPANY BGN The 10 largest companies in terms of total revenue in sector 1 SUMUP EOOD 94,835,000 Other information technology and computer service activities 2 PROGRESS SOFTWARE EAD 81,872,000 earned total revenue of BGN 864,155,000 and accounted for 3 TELELINK BUSINESS SERVICES EAD 71,386,000 20.14% of the industry's total revenue. 4 PAYSAFE BULGARIA EOOD 62,478,000 5 ALSO BULGARIA EOOD 53,763,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE MARKET 6 SIRMA SOLUTIONS AD 52,165,000 COMPUTER CONSULTANCY ACTIVITIES WERE: COMPANY BGN 7 HEWLETT-PACKARD GLOBAL DELIVERY BULGARIA CENTER 50,846,000 EOOD IBM BULGARIA EOOD 115,891,000 8 IBM BULGARIA EOOD 38,784,000 CAD R&D CENTRE PROGRESS GROUP AD 40,419,000 9 SAP LABS BULGARIA EOOD 33,937,000 BULPROS CONSULTING AD 24,327,000 10 VMWARE BULGARIA EOOD 33,677,000 KONGRES DZZD 19,399,000 CODIX BULGARIA EAD 18,293,000 STRYPES EOOD 14,893,000 TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN ADASTRA BULGARIA EOOD 12,451,000 OPERATING REVENUE IN COMPUTER PROGRAMMING, INTELLIGENT SYSTEMS BULGARIA EOOD 11,804,000 CONSULTANCY AND RELATED ACTIVITIES COCA-COLA HELLENIC IT SERVICES EOOD 11,376,000 RANK COMPANY Y/Y GROWTH TECH EXPERTS EOOD 11,105,000 1 ENOTION EOOD 117700.00% 2 V-ONLINE SISTEMS EOOD 49000.00% 3 TRAVEL KLUB MARKETING OOD 39600.00% The 10 largest companies in terms of total revenue in sector 4 GAMELEAP OOD 25700.00% Computer consultancy activities earned total revenue of BGN 5 IHOLD EOOD 25400.00% 279,958,000 and accounted for 6.53% of the industry's total 6 ROKET ONLAYN EOOD 22100.00% revenue.