IT companies are expected to continue facing challenges and high uncertainty in the second half of 2023, according to companies in the IT industry.
The “Digital Care” action did not continue during the current financial year, resulting in a large drop in sales of computers and tablets. The technology sector is not expected to recover and therefore the challenges for the products and the sector in general will continue until the end of the year. The trends in the European and our wider economic environment are worrying mainly in relation to the continued increase in interest rates to deal with persistent inflation.
However, the government’s plans to accelerate the digital transformation of the state, organizations and businesses, with the faster absorption of available resources, create prospects for a long-term recovery of the market, causing cautious optimism in the sector’s businesses. The expected improvement of the domestic and international computer and smartphone market is expected to contribute to this.
More specifically, the capitalization of the IT sector reached 1.086 billion euros in the six-month period, according to the analysis of BETA Securities. The sector in the first six months of the current financial year was included in the category with the largest increase in activity (+28.3%) as well as the largest increase in operating profitability (+42%) to 60.7 million euros.
IT companies’ turnover amounted to 323.6 million euros in the six-month period compared to 252.1 million euros in the corresponding period of 2022, up 28.3%. EBITDA amounted to 60.7 million euros compared to 42.7 million euros in the six-month period of 2022, up 42%. Profits after taxes reached 27.7 million euros versus 15.4 million euros, up 79%. The sector’s net lending amounted to 161.9 million euros. In individual companies, E-NET, Entersoft, Profile, Austriacard and Space showed the best performances.
