Industry insights and figures Information service activities

Operating margin
13.5 %
▲ +0.7pp
2014
Companies
140000
2020

Key insights Information service activities

Actionable signals from current data
EU27_2020
Average operating result: 13.5% of revenue (2014).
Personnel costs: 22.6% of revenue (2014).
Number of companies: 140,000 (2020).

Sector outlook Information service activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Information service activities sector across EU27 average comprises approximately 124,355 enterprises employing about – people and generating €70.4 bn in net turnover in 2014. The average enterprise size is – employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a healthy operating margin of 13.5% of revenue in 2014, the sector reports €9.5 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Information service activities cost mix is reasonably balanced: cost of revenue at 65.4%, personnel at 22.6% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Trend & trajectory

Over the period 2012 to 2014 the operating margin moved from 12.5% to 13.5% (+1.0 percentage points), an encouraging upward trajectory. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Information service activities

Sector average % of revenue
Cost structure for Information service activities in EU27_2020, 2011 to 2014, expressed as percentage of revenue.
Revenue / costs 2012 2013 2014
Total revenue 100.0% 100.0% 100.0%
Personnel costs (total) 24.3% 24.6% 22.6%
Gross wages 18.7% 19.0% 17.5%
Social and pension contributions 5.6% 5.6% 5.1%
Other costs 63.2% 62.6% 63.9%
Gross operating surplus (EBITDA) 12.5% 12.8% 13.5%

Source: Eurostat Structural Business Statistics (latest available year).

Operating result over 3 years

Sector average % of revenue
Average
12.9%
Peak
13.49%
2014
Low
12.46%
2012
Latest
13.49%
2014

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Information service activities (2014)

Recommended next steps

Based on the latest available data for Information service activities