Industry Report Computer programming, consultancy and related activities 2017 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 2016 there were a total of 7,567 companies operating in the industry. In 2015 their number totalled 6,851. 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 8,188 SECTOR 2017 2016 2015 companies at the end of 2017, compared to 7,567 in the OTHER INFORMATION TECHNOLOGY AND 3,618 3,294 3,049 previous year and 6,851 in 2015. COMPUTER SERVICE ACTIVITIES COMPUTER PROGRAMMING ACTIVITIES 2,334 2,226 1,998 The industry's net profit amounted to BGN 442,189,000 in COMPUTER CONSULTANCY ACTIVITIES 1,411 1,280 1,099 2017. COMPUTER FACILITIES MANAGEMENT 825 767 705 ACTIVITIES The industry's total revenue was BGN 5,065,967,000 in 2017, up by 18.09% compared to the previous year. The combined costs of the companies in the Computer III. REVENUES programming, consultancy and related activities industry reached BGN 4,565,868,000 in 2017, up by 19.42% year-on- The total revenue in the industry was BGN 5,065,967,000 in year. 2017, BGN 4,289,939,000 in 2016 and 3,791,169,000 in 2015. The industry's total revenue makes up 5.28% to the country's Gross domestic product (GDP) in 2017, compared Total revenue to 4.63% for 2016 and 4.24% in 2015. Net sales revenue A total of 46,787 people were employed in the Computer 6,000,000,000 programming, consultancy and related activities industry in 5,500,000,000 2017, compared to 42,710 in 2016 and 38,714 in 2015. 5,065,967,000 5,000,000,000 Most of the companies in the industry are based in Sofia, 4,500,000,000 4,289,939,000 4,844,365,000 followed by Varna and Plovdiv. 4,000,000,0003,791,169,000 4,102,243,000 3,500,000,000 3,584,603,000 II. INTRODUCTION 3,000,000,000 BGN 2,500,000,000 In 2017 the companies in the Computer programming, consultancy and related activities industry numbered 8,188, 2,000,000,000 distributed in 4 sectors. 1,500,000,000 1,000,000,000 500,000,000 INDUSTRY STRUCTURE BY SECTORS AND NUMBER OF COMPANIES 1,411 0 2015 2016 2017 The companies in the Computer programming, consultancy 2,334 and related activities market of Bulgaria earned combined net sales revenues of BGN 4,844,365,000 in 2017. 825 In annual terms, sales marked an increase of 18.09% compared to 2016. In comparison to 2015 they grew by 35.14%. In 2016 sales grew by 14.44% year-on-year. The Computer programming, consultancy and related activities industry total revenue make up 5.28% to the country's GDP in 2017, compared to 4.63% for 2016 and 4.24% in 2015. 3,618 Other information technology and computer service activities Computer programming activities Computer consultancy activities Computer facilities management activities 2 SeeNews Industry Report Share in GDP 6 INDUSTRY'S NET SALES REVENUE STRUCTURE BY SECTORS 5.5 5.28% 30.26% 5 4.63% 15.18% 4.54.24% 4 3.5 3 4.75% 2.5 2 1.5 1 0.5 0 2015 2016 2017 49.80% Other information technology and computer service activities In 2017 the Computer programming, consultancy and related Computer programming activities activities industry contributed to GDP BGN 4,344,285,000 in Computer consultancy activities Gross value added (GVA) accounting for 2.55% 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 29.57%, was recorded by Computer 3,694,783,000, accounting for 2.42% of the total for the consultancy activities. There was no industry's sector to country in 2016. In 2015 the GVA of the Computer report a drop in net sales revenues. programming, consultancy and related activities was BGN 3,199,169,000, or 2.07% 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 91,877,000 86,497,000 RANK SECTOR BGN SHARE OF THE COUNTRY'S SAP LABS BULGARIA EOOD 79,449,000 79,370,000 GVA (%) SIRMA SOLUTIONS AD 41,320,000 34,074,000 1 OTHER INFORMATION TECHNOLOGY AND 2,005,321,000 1.18 OTHER INFORMATION TECHNOLOGY AND COMPUTER SERVICE ACTIVITIES COMPUTER SERVICE ACTIVITIES ENTERPRISE SERVICES BULGARIA EOOD 227,321,000 227,308,000 2 COMPUTER PROGRAMMING ACTIVITIES 1,462,364,000 0.86 ALSO BULGARIA EOOD 174,597,000 172,328,000 3 COMPUTER CONSULTANCY ACTIVITIES 672,285,000 0.40 PAYSAFE BULGARIA EOOD 101,811,000 101,811,000 4 COMPUTER FACILITIES MANAGEMENT 204,315,000 0.12 ACTIVITIES COMPUTER CONSULTANCY ACTIVITIES IBM BULGARIA EOOD 132,954,000 132,171,000 EXPERIAN BULGARIA EAD 53,489,000 53,489,000 We expect, based on the trend in the last three years, the total CAD R&D CENTRE PROGRESS GROUP AD 37,690,000 37,622,000 revenue of the Computer programming, consultancy and COMPUTER FACILITIES MANAGEMENT ACTIVITIES related activities industry to change at a compound annual CEZ INFORMATION AND 18,222,000 18,061,000 growth rate (CAGR) of 15.60% in 2018. COMMUNICATION TECHNOLOGIES BULGARIA EAD KPMG IT SERVICE OOD 11,947,000 11,941,000 NET SALES REVENUE BY SECTORS RANK SECTOR NET SALES REVENUE LIREX HIGH TECH AD 7,624,000 7,276,000 (BGN) 1 OTHER INFORMATION TECHNOLOGY AND COMPUTER 2,412,495,000 SERVICE ACTIVITIES The top 10 companies in terms of total revenue in Computer 2 COMPUTER PROGRAMMING ACTIVITIES 1,466,122,000 programming, consultancy and related activities accounted 3 COMPUTER CONSULTANCY ACTIVITIES 735,543,000 for 21.54% of the industry's total in 2017, 23.94% in 2016 and 4 COMPUTER FACILITIES MANAGEMENT ACTIVITIES 230,205,000 24.27% in 2015. 3 SeeNews Industry Report MM SOLUTIONS EAD 29,751,000 TOP 10 COMPANIES BY TOTAL AND NET SALES REVENUE IN THE MUSALA SOFT AD 26,746,000 INDUSTRY SCALE FOCUS AD 26,102,000 RANK COMPANY TOTAL REVENUE NET SALE FADATA EOOD 24,548,000 (BGN) REVENUE (BGN) 1 ENTERPRISE SERVICES BULGARIA EOOD 227,321,000 227,308,000 2 ALSO BULGARIA EOOD 174,597,000 172,328,000 3 IBM BULGARIA EOOD 132,954,000 132,171,000 The 10 largest companies in terms of total revenue in sector Computer programming activities earned total revenue of 4 PAYSAFE BULGARIA EOOD 101,811,000 101,811,000 BGN 424,443,000 and accounted for 8.38% of the industry's 5 PROGRESS SOFTWARE EAD 91,877,000 86,497,000 total revenue. 6 VMWARE BULGARIA EOOD 89,066,000 88,872,000 7 SAP LABS BULGARIA EOOD 79,449,000 79,370,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE SECTOR OTHER 8 HEWLETT-PACKARD GLOBAL DELIVERY 73,714,000 73,677,000 BULGARIA CENTER EOOD INFORMATION TECHNOLOGY AND COMPUTER SERVICE 9 VISTEON ELECTRONICS BULGARIA EOOD 61,865,000 61,857,000 ACTIVITIES WERE: COMPANY BGN 10 STEMO OOD 58,544,000 55,931,000 ENTERPRISE SERVICES BULGARIA EOOD 227,321,000 ALSO BULGARIA EOOD 174,597,000 PAYSAFE BULGARIA EOOD 101,811,000 The total revenues of the top 10 companies in the Computer VMWARE BULGARIA EOOD 89,066,000 programming, consultancy and related activities were 1.14% HEWLETT-PACKARD GLOBAL DELIVERY BULGARIA CENTER EOOD 73,714,000 of GDP in 2017, compared to 1.11% for 2016 and 1.03% in 2015. VISTEON ELECTRONICS BULGARIA EOOD 61,865,000 STEMO OOD 58,544,000 The top 10 by assets in the Computer programming, TELELINK BUSINESS SERVICES EAD 55,376,000 consultancy and related activities industry made up BGN ORACLE EAST CENTRAL EUROPE LIMITED - BRANCH BULGARIA 43,915,000 739,298,000, or 15.26% of the total net sales revenue. HP INC BULGARIA EOOD 41,402,000 TOP 10 BY TOTAL ASSETS IN THE INDUSTRY RANK COMPANY BGN The 10 largest companies in terms of total revenue in sector 1 SPETSIALIZIRANI LOGISTICHNI SISTEMI AD 131,079,000 Other information technology and computer service activities 2 SUMUP EOOD 116,277,000 earned total revenue of BGN 927,611,000 and accounted for 3 PROGRESS SOFTWARE EAD 96,944,000 18.31% of the industry's total revenue. 4 PAYSAFE BULGARIA EOOD 81,174,000 5 IT SOFT EAD 61,797,000 TOP 10 COMPANIES BY TOTAL REVENUE IN THE INDUSTRY 6 SIRMA SOLUTIONS AD 58,420,000 COMPUTER CONSULTANCY ACTIVITIES WERE: COMPANY BGN 7 ALSO BULGARIA EOOD 54,019,000 IBM BULGARIA EOOD 132,954,000 8 SAP LABS BULGARIA EOOD 48,848,000 EXPERIAN BULGARIA EAD 53,489,000 9 ENTERPRISE SERVICES BULGARIA EOOD 47,945,000 CAD R&D CENTRE PROGRESS GROUP AD 37,690,000 10 HAOS SOFTWARE OOD 43,807,000 BULPROS CONSULTING AD 28,205,000 KONGRES DZZD 20,501,000 CODIX BULGARIA EAD 20,365,000 TOP 10 COMPANIES WITH HIGHEST ANNUAL GROWTH IN OPERATING REVENUE IN COMPUTER PROGRAMMING, STRYPES EOOD 20,261,000 CONSULTANCY AND RELATED ACTIVITIES COCA-COLA HELLENIC IT SERVICES EOOD 17,023,000 RANK COMPANY Y/Y GROWTH ADASTRA BULGARIA EOOD 15,382,000 1 NETPEAK EOOD 200400.00 TECH EXPERTS EOOD 14,647,000 % 2 B SOLUTIONS EOOD 145600.00% 3 LA DIET OOD 46476.92% The 10 largest companies in terms of total revenue in sector 4 ENTERTAINMENT MOBILE OOD 41304.76% Computer consultancy activities earned total revenue of BGN 5 TABTIVI EOOD EOOD 31100.00% 360,517,000 and accounted for 7.12% of the industry's total 6 INOVATIVE SOFTWARE SYSTEMS EOOD 27600.00% revenue.