Accounting figures for joint stock companies in the information sector, 2000

The ICT sectors operating profit fell from NOK 8.763 billion in 1999 to an operating loss of NOK 0.767 billion in 2000. Except for ICT manufacturing industry, which experienced an increase in operating profit of 27.2 per cent, all ICT businesses showed a decline. The developments in operating profit for the sector from 1999 to 2000 are due to accounting charges taken by some major joint-stock companies. Operating profit would have shown a less dramatic reversal if it had been corrected for these circumstances.

Operating loss in computer and related activities

The operating profit in computer and related activities fell from NOK 0.755 billion in 1999 to a loss of NOK 1.519 billion in 2000. Operating income for this business grew by 13.1 per cent from 1999 to 2000, while operating expenditure increased by 20.1 per cent in the same period. ICT wholesale and retail sales was the group in the ICT sector to experience the greatest change in operating profit from 1999 to 2000. Operating profit fell from NOK 1.365 billion to a loss of NOK 3.195 in 2000. However, ICT wholesale and retail sales was particularly marked by a small number of companies taking accounting charges in 2000. Operating profit in the telecommunications business fell from NOK 6.515 billion in 1999 to NOK 3.785 billion in 2000. Whereas operating income in this business grew by 15.9 per cent from 1999 to 2000, operating expenditure increased by 24.4 per cent in the same period. The average for all non-financial joint-stock companies shows an increase in operating profit of 58 per cent from 1999 to 2000. This big increase primarily comes from the strong showing of joint-stock companies in oil and gas extraction. For Mainland Norway operating profit fell by 11.1 per cent from 1999 to 2000.

Low operating profit margin for ICT sector

In the entire period from 1995 to 2000 operating profit margin has been lower in the ICT sector than the average for Norwegian business and industry. The gap is widest in 2000, when all non-financial joint-stock companies had an operating profit margin of 9.7 per cent. The ICT sector had an operating profit margin of -0.4 per cent.

ICT-manufacturing industry had the best return on capital in 2000

Return on total assets and return on equity measure the yield on invested total capital and on equity, respectively. In 2000 the entire ICT sector had returns on total assets and on equity of 1.7 and 0.1 per cent, respectively. ICT manufacturing industry performed best, with returns of 6.3 and 8.3 per cent. Corresponding figures for all non-financial joint-stock companies were 8.1 and 7.7 per cent. Aside from 2000, return on equity in the ICT sector has been good. In 1997, 1998 and 1999 it was above the average for all non-financial joint-stock companies.

The equity ratio in the ICT sector increased by 7.2 percentage points from 1995 to 2000

The equity ratio is used to measure a joint-stock companys capital strength. For the ICT sector as a whole the equity ratio in 2000 was 38.7 per cent, an increase over 1995, when the corresponding ratio was 31.5 per cent. Within the ICT sector, manufacturing had the highest equity ratio in 2000, 46.5 per cent. By comparison, the corresponding ratios for all non-financial joint-stock companies were 37.1 per cent in 2000 and 37.9 per cent in 1999.

ICT sector experiencing diminishing total asset turnover

Circulation rate on total asset may be a way to measure how capital tied up in the companies is utilized or how capital-intensive the industry is. Circulation rate on total asset for the ICT sector was 0.5 in 2000. The corresponding figure for 1995 was 1.3. The average for all non-financial joint-stock companies was 0.6 in 2000 and 0.9 in 1995.

More information: mads.hansen-moellerud@ssb.no , tel. +47 62 88 52 09, or geir.martin.pilskog@ssb.no , tel. +47 62 88 54 24.

Tables:

• Table 1 Number of joint-stock companies. 1995-2000
• Table 2 Operating income. 1995-2000. Million NOK
• Table 3 Operating expenses. 1995-2000. Million NOK
• Table 4 Operating profit. 1995-2000. Million NOK
• Table 5 Operating profit margin. 1995-2000. Per cent
• Table 6 Operating margin. 1995-2000. Per cent
• Table 7 Return on total assets. 1995-2000. Per cent,
• Table 8 Return on equity. 1995-2000. Per cent,
• Table 9 Circulation rate on total assets. 1995-2000
• Table 10 Equity ratio. 1995-2000. Per cent
• Table 11 Current ratio. 1995-2000