Page 15 - bne_Tech_12_2019

Investment
December 2019 www.intellinews.com I Page 15
Foreign-owned companies generate 73% of the market revenues and have a sustained growth rate of about 12% per year, compared to the Romanian companies, which generate about 27% of the market, and in recent years have stagnated in terms of revenues, ANIS reported.
Exports represent 80% of the revenues in this market.
A breakdown of the IT industry this year reveals €4.8bn generated by the software and services sector, and €1.1bn derived from other activities in the IT area.
The largest software company in Romania remained Oracle Romania with a turnover of over
Investors overweight on Russia, with Yandex, Sberbank and oil names in favour
More than 60% of foreign investors remain overweight on Russia, with such names as Sberbank, Yandex and oil shares being in favour, while steel, gas and retail are outsiders, BCS Global Markets wrote, citing a survey of 30+ institutional investors carried out during its marketing trips.
"Russia remains a consensus overweight with 60% affirmative answers, while only 17% [of investors] said they were underweight relative to their benchmarks," BCS GM wrote, noting that this has been confirmed in both various surveys and actual positioning, as per EPFR Global data. BCS GM also acknowledges the likely positive bias in the sample, as BCS GM is seen as a top Russia/regional specialist.
€206mn (3.6% of the total) in 2018. The ranking also includes IBM Romania (€200mn, 3.5% of the total), Ericsson Telecommunications Romania (over €170mn, 3% of the total), SAP Romania (approximately €108mn) and Endava Romania (approximately €108mn). It is worth noting the entry of SAP Romania SRL in the top 5, with the highest percentage increase of 63%.
Regarding the top game producers, the first place by turnover in 2018 is occupied by Electronic Arts Romania, which has boasted several records: the largest employer and the most profitable player in 2018 (€38mn turnover, 79% of the total), followed by King Games Studio (Romania) (€2.4mn, 4.9% of the total) and Green Horse Games (€11mn, 2.2% of the total).
As analysed by bne IntelliNews, Sberbank has become a so-called “tourist stock” – if an investor has an appetite for Russian risk then the first stock they buy is Sberbank.
Yandex, Russia's most valuable digital company, has recently shrugged off governance concerns as it reached an agreement with authorities and established a Public Interest Foundation, an NGO that would hold the golden share in the company and address "national interests".
Investors have been most positive on banks,
oils and media, with banks, mostly referring
to Sberbank, again taking the helm as the top expected outperformer for the next six months —