Revenue in communications sector plummets 18.7 percent

According to the latest data released by the Statistics and Census Service (DSEC), a total of 3,040 establishments were operating in the Transport, Storage and Communications sectors in 2016, a year- on-year increase of 251, or 9 percent. At the same time, the number of people engaged in the sectors last year rose by 4.6 percent to 20,244, with employees accounting for 80.2 percent.

The sectors’ revenue and expenditure amounted to a combined MOP27.83 billion and MOP22 billion respectively, down by 3 percent and 4.9 percent year-on- year.

The sharp drop in both sectors’ revenue was driven by an 18.7 percent fall in the Communications sector.

In the Transport and Storage sector, the number of operating establishments increased by 242 year-on-year to 3,000, according to DSEC, due to an increase in the number of taxis. The number of people engaged in the sector increased by 5.3 percent to 17,750.

Driven by the higher revenue from passenger transport (MOP8.9 billion, +9.9 percent) and rent of vehicles (MOP1.26 billion, +16.9 percent), the sector’s revenue grew by 5.1 percent year-on-year to MOP19.9 billion.

Meanwhile, expenditure amounted to MOP16.62 billion, up by 3.3 percent year-on-year, driven by operating expenses (MOP8 billion, +2.2 percent) and compensation of employees (MOP3.69 billion, +12.6 percent).

For the Communications sector, a total of 40 establishments were operating last year, up by nine year-on-year, with the number of people engaged rising slightly by 0.2 percent to 2,494.

Revenue of the sector decreased by 18.7 percent year-on-year to MOP7.93 billion, dragged by a 34.3 percent drop in revenue from the sales of goods (MOP3.4 billion).

At the same time, the sector’s expenditure decreased by 23.5 percent year-on-year to MOP5.39 billion, incurred mainly through the purchase of goods and services (MOP3.57 billion, -33.7 percent), which more than offset the respective increases of 14.4 percent and 4.7 percent in operating expenses (MOP925 million) and compensation of employees (MOP900 million).

Gross Value Added of the Transport and Storage sector grew by 13.9 percent year-on-year to MOP6.97 billion, while that of the Communications sector decreased 11.7 percent year-on-year to MOP3.25 billion. Gross Value Added measures the sector’s relative contribution to the economy as a whole.