Canada’s ICT industry sets another revenue record
Branham Group’s Top 250 tech companies deliver 9.6% revenue growth and total earnings of $105.3 billion
OTTAWA, Ontario, Canada – May 31, 2017—The results are in from Branham Group’s annual ranking of tech companies, and Canada’s technology sector delivered another record-setting year.
The Top 250 is comprised of the largest Canadian companies as ranked by revenue. The 2017 edition of the ranking found:
- Fiscal 2016: $105.3 billion in total revenue, a year-over-year increase of 9.6%
(In fiscal 2015, the numbers were $96.1 billion in total revenue and an increase of 5.7%)
- 73% of the Top 250 companies grew their revenue
- 54% achieved double- or triple-digit growth
“This is a remarkable achievement,” said Branham Group CEO Wayne Gudbranson. “The Top 250 Canadian tech companies have now delivered growth every year since 2009, and this year they set a new record. And they did that by growing not one or two per cent, but by almost 10 per cent.
“These Canadian companies should be very proud of that accomplishment.”
BCE holds the number one spot
The 2016 edition of the Branham300 saw BCE supplant BlackBerry as Canada’s number one provider of technology products and services, and BCE holds the lead position again this year. Branham Group excludes the company’s media, wireline and voice revenue as irrelevant to our ranking, and its revenue still grew 8% year over year.
Also impressive in the telecom/communications provider space:
Shaw, 44% growth
MTS, 17% growth
A note about MTS: the acquisition of the company by BCE took place after its fiscal year end, so it is still a standalone entity in terms of the 2017 edition of the list.
Results by region
The majority of Canada’s ICT (Information and Communications Technology) activity takes place in four provinces. Among the Top 250:
Alberta: 27 companies
Quebec: 26 companies
British Columbia: 41 companies
Ontario: 147 companies
These four provinces represent:
96% of the Top 250 companies
98% of Top 250 revenues
Results by sector
Software: The Software sector generated 16.7% of the Top 250 revenue and accounted for 37% of Top 250 companies. This is almost unchanged from last year, when the numbers were 18.5% and 37%.
BlackBerry retained its first-place ranking in the category, but only barely: its $2.86 billion in fiscal 2016 revenue just edged out the $2.82 billion earned by Constellation Software.
X Service Providers: Once again, the x Service Provider category (which includes, for example, Internet Service Providers and Application Service Providers) generated by far the most revenue, 46.2% of the total, while only containing 5.6% of the companies.
BCE again led the group, with earnings of $15.2 billion, excluding media, wireline and voice.
ICT Professional Services: The sector saw little change; its 36% share of the Top 250 companies is almost the same as the 37% last year, and its share of revenue came in at 22.2% compared to 21.5% in fiscal 2015.
CGI was again the flagship for overall services revenue, and its $10.7 billion in earnings is a 4% increase compared to the previous year.
ICT Hardware and Infrastructure: This sector declined again this year. In fiscal 2015, Hardware revenue dropped to $15.8 billion, down from $22.3 billion in 2014. For fiscal 2016, the sector’s performance declined again, to $15.6 billion.
The sector accounts for 14.8% of the Top 250 revenue. Celestica is again Hardware champ, posting revenue growth of 7%.
“Technology is the industry of the future, and Canada has the ability to compete on the global-economy stage. The companies on our Top 250 list are the ones that will build Canada’s place in that economy and ensure our future competitiveness,” Gudbranson said.
Top 25 ICT Multinationals
Branham Group estimates the in-Canada revenue of the Top 25 multinational companies operating in Canada.
We calculate that multinationals generated $73.4 billion in revenue in this country in fiscal 2016.
Notable growth performers include Amazon and Alphabet, which respectively earned increases of 31.7% and 24.7%. The big standout in terms of Canadian revenue was Nokia, which significantly increased both its worldwide revenue and the percentage of that revenue allocated to Canada. We estimate the company generated $1.2 billion in Canadian earnings.
About the Branham300
Branham Group, a global Information and Communication Technology (ICT) industry analyst and strategic marketing company, has produced the Branham300 ranking of ICT companies in Canada for 24 consecutive years.
The Branham300 is the best-known and most widely referenced listing of Canada’s top ICT companies, ranked by revenue. The listing also tracks the top ICT multinationals operating in Canada, plus Up and Comers, those young Canadian companies Branham Group believes will be big hits soon.
Branham Group’s ranking is unique in Canada because it tracks both publicly held and privately owned companies. It is the only comprehensive list to do so.
The Branham300 consists of three major lists.
Top 250 Canadian ICT Companies: ranked by total revenue generated
Top 25 ICT Multinational Companies: ranked by revenue generated in Canada
Top 25 Up and Coming ICT Companies: ranked on innovation and promise
Sub-listings that are generated from the Top 250 listing include:
Top 25 Canadian Software Companies
Top 25 Canadian ICT Professional Services Companies
Top 25 Canadian ICT Hardware and Infrastructure Companies
Top 10 Canadian xService Providers (xSP) (ASP, ISP, wireless, MSP, etc.)
Top 10 Canadian ICT Security Companies
Top 10 Canadian Wireless Solutions Companies
Top 5 Pure-play Healthcare ICT Companies
Top 10 ICT Staffing Companies
Top 10 Software as a Service (SaaS) Companies
Top 10 Mobile Technology Companies
Top 5 Digital Media and Entertainment Companies
Top 25 Movers and Shakers
Top 15 Growth Companies
Branham Group Inc. (branhamgroup.com), is a Canadian based, globally directed Industry Analyst and Strategic Advisory for the Information and Communications Technology (ICT) sector. Branham provides Planning – Marketing – Partnering service for established and new technology brands in the global market. With its Branham300 database, Branham has expansive data on the Canadian ICT industry. The Branham300 is a unique community in the Canadian ICT sector that includes privately held and publicly traded tech companies in Canada.
Wayne Gudbranson, CEO
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Peter Wolchak, Director, Branham300
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