For the second year in a row, the IT and Telecom sector team at the Better Regulation Delivery Office (BRDO) has been analyzing the financial reports of the 30 largest IT companies by revenue. The combined revenue of these companies accounts for 42% of the total IT market revenue. In 2023, the Top 30 companies generated $2.5 billion in revenue and paid $53 million in corporate tax to the state budget. The ranking leaders are EPAM Systems, GlobalLogic, Luxoft among service companies, and Fintech Band (monobank) among product companies.
According to the State Statistics Service, the total revenue of the Top 30 IT companies decreased by 6% ($145 million) in 2023. This was due to reduced demand for IT services, opening of new offices abroad, the subsequent outflow of specialists, and the redistribution of business activities among multiple legal entities. The top five service companies by revenue are EPAM Systems, GlobalLogic, EPAM Digital, Luxoft, and Intellias, while the leading product companies are Fintech Band, Playtika, Playtech, Prom, and UPC.
Ihor Samokhodskyi, Head of the IT and Telecom sector at BRDO, noted: “Access to the financial reports of IT companies enables us to analyze the industry’s business activity, track trends, and observe changes in revenue of key players over the years. Ukrainian IT continues to operate in the face of war. We see that despite the overall decrease in revenue, some players are showing growth regardless of the challenges.”
Roman Kornilyuk, Financial analyst at YouControl, added: “During wartime shocks and systemic instability, it is important to monitor sectoral financial indicators. Ukraine’s IT market, influenced by militarization, digitalization, and Euro-integration, is undergoing rapid changes that require careful analysis to make informed decisions. The YouControl team provides society with the tools based on open data analytics to better understand sectoral issues and identify new opportunities for IT business development.”
Fintech Band, EPAM Systems, and GlobalLogic show the highest net income, generating 47% of the Top 30’s total amount.
In 2023, IT companies in the ranking paid $53 million in corporate tax, 12.5% less than in 2022. Fintech Band and EPAM Systems contributed half of the total corporate tax the Top 30 companies paid. Five of the Top 30 companies became payers of the exit capital tax, one of the benefits of Diia.City, which allowed them to reduce their tax burden. The largest exit capital taxpayer was GlobalLogic, paying $350,000 in 2023, compared to $9 million in corporate tax in 2022.
The Ukrainian IT market continues using the individual entrepreneur model to collaborate with specialists. However, in 2023, full-time employment in the Top 30 companies increased by 24%, reaching 10,500 employees. Some companies created additional legal entities to take advantage of all the benefits of Diia.City residency, particularly regarding taxation of full-time employees. For example, last year EPAM Digital increased its staff by 2,500 people, and SoftServe Technologies by 1,200 people. Regarding revenue per IT specialist, the absolute leader is video game developer Playtika, with $6,900 per month.
New companies that entered the Top 30 largest companies in 2023 include Modus X, the SCM Group company, system integrator Seeton Group, Favbet Tech, and several companies from the SoftServe Group. Meanwhile, Metinvest Digital (SCM Group), the Ukrainian division of Snap Inc., Visa, the service company Star, and video game developers Wargaming and Ubisoft left the Top 30.
The financial reports of the legal entities of IT companies were published by the State Statistics Service of Ukraine and provided for analysis by YouControl, an online system for business analytics, competitive intelligence, and due diligence.