Industry insights and figures Information and communication

Operating margin
16.7 %
▼ -2.0pp
2022
Companies
1460867
2023

Key insights Information and communication

Actionable signals from current data
EU27_2020
Average operating result: 16.7% of revenue (2022).
Personnel costs: 23.5% of revenue (2022).
Number of companies: 1,460,867 (2023).

Sector outlook Information and communication

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Information and communication sector across EU27 average comprises approximately 1,392,261 enterprises employing about 6,266,797 people and generating €1.7 tn in net turnover in 2022. The average enterprise size is 5 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 robust operating margin of 16.7% of revenue in 2022, the sector reports €277.4 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 and communication cost mix is reasonably balanced: cost of revenue at 62.9%, personnel at 23.5% 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.

Productivity & human capital

Each employee in the Information and communication sector generates approximately €230,000 of net turnover against a labour cost of €42,000, yielding a productivity-to-cost ratio of 5.5. Value added per employee stands at €106,000 This is a headline figure to compare against individual firm performance when judging whether headcount is creating proportional value.

Trend & trajectory

Over the period 2011 to 2022 the operating margin moved from 19.2% to 16.7% (-2.5 percentage points), a deteriorating trajectory that warrants attention. 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 and communication

Sector average % of revenue
Log in to see the full 13-year history
Cost structure for Information and communication in EU27_2020, 2008 to 2022, expressed as percentage of revenue.
Revenue / costs 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2024
Total revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Personnel costs (total) 21.7% 22.9% 23.5% 23.6% 23.8% 23.9% 23.8% 24.3% 24.1% 24.4% 23.6% 23.5%
Gross wages 16.9% 17.7% 18.2% 18.3% 18.4% 18.6% 18.5% 19.0% 18.9% 19.1% 18.6% 18.6%
Social and pension contributions 4.8% 5.2% 5.3% 5.4% 5.3% 5.3% 5.3% 5.3% 5.2% 5.2% 5.0% 4.9%
Other costs 59.1% 57.7% 57.5% 57.8% 58.5% 58.5% 58.6% 57.8% 57.7% 56.5% 57.8% 59.9%
Gross operating surplus (EBITDA) 19.2% 19.4% 19.0% 18.6% 17.8% 17.7% 17.6% 17.9% 18.2% 19.2% 18.7% 16.7%
Depreciation 10.3% 11.2% 11.5% 11.3% 11.1% 11.4% 11.2% 11.3% 11.2% 12.0% 11.3% 11.1%
Operating result (EBIT) 8.9% 8.2% 7.5% 7.3% 6.7% 6.3% 6.4% 6.6% 7.1% 7.2% 7.3% 5.6%

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

Per-employee benchmarks and capital intensity Information and communication

Revenue per employee
230€k
Labour cost per employee
42€k
Value added per employee
106€k
Labour productivity
92€k
Employees per firm
5
Investment rate
14.0%
Labour cost / value added
46.0%
Wage-adjusted productivity
148.0%

Average sector figures sourced from Eurostat. Use as a yardstick. Note your own ratios may differ by scale, mix and legal form.

Operating result over 12 years

Sector average % of revenue
Average
18.3%
Peak
19.4%
2012
Low
16.67%
2022
Latest
16.67%
2022

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Information and communication (2022)

Recommended next steps

Based on the latest available data for Information and communication