The information and communications activities industry (Section J) includes 13 industry groups covering the activities on production and distribution of information and cultural products, the provision of the means to transmit or distribute these products, as well as data on communications, information technology activities and the processing of data and other information service activities.
The highlights of results of the 2018 CPBI for the information and communication activities industry section is presented in Figure 1. This figure shows the number of establishments engaged in the industry sections, total employment created, total revenue generated, total expenses incurred, and total value added generated.
Other telecommunications activities industry group led in terms of number of establishments
In 2018, the total number of establishments that were engaged in information and communication activities were recorded at 5,665. This is 16.5 percent higher than the 4,862 establishments recorded in 2012. (Table A)
Among the industry groups, other telecommunications activities topped the list with 2,950 establishments or 52.1 percent. Computer programming, consultancy and related activities ranked second (1,080 or 19.1%), followed by radio broadcasting activities (444 or 7.8%). (Table 1A, and Figure 2)
Twenty-six of 100 establishments were in the National Capital Region (NCR)
Across regions, NCR registered the largest number of establishments with 26.2 percent. Ranked in second, and third are the Central Visayas, and Western Visayas with 9.8 percent and 6.2 percent, respectively.
The least number of establishments is in the Autonomous Region in Muslim Mindanao with only 100 or 1.8 percent. (Table 3A)
Computer programming, consultancy and related activities generated most of the employment
By industry groups, of the total 172,974 employed persons in information and communication, 43.1 percent were engaged in computer programming, consultancy and related activities. Data processing, hosting and related activities; web portals followed with 10.2 percent, and other telecommunication activities (9.1%). (Table 1A, and Figure 3)
On the average, the reported number of employees per establishment is 31. By industry group, software publishing had the highest number of employees per establishment with 284 while other telecommunication activities had the least with 5 employees per establishment.
Nine out of the 13 industry groups had higher employee per establishment ratio than that of the national average. (Table 2)
Three of four employees were employed in establishments in NCR
By region, employees in information and communication were located in NCR with 74.9 percent share to total. Far second is the Central Visayas with only 8.6 percent followed by the Central Luzon with 2.6 percent. (Table 3A)
Only the NCR had surpassed the national level average employment per establishment ratio with 87. (Table 4)
Computer programming activities hired majority of sub-contract workers
In addition to the total employees hired that are engaged in information and communication, there were 8,051 more workers hired under sub-contract agreement to augment the working force. By industry groups, majority of workers under sub-contract agreement were engaged in computer programming activities with 32.9 percent. On the other hand, sound recording and music publishing activities had the lowest sub-contracted workers with only 0.1 percent. (Table 1)
Firms paid total annual compensation of PhP 131 billion
The total compensation paid to employees was Php 131.0 billion. This translated to an average annual compensation per employee of Php 766.7 thousand.
By industry groups, employees engaged in wireless telecommunications activities were paid with the highest average annual compensation with PhP 2.0 million. Employees employed in television programming and broadcasting activities received the second highest average annual compensation with PhP 1.9 million. Meanwhile, wired telecommunications services with Php 1.4 million ranked third. (Table 1, and Figure 4)
By region, firms in NCR had the highest, and the lone region to exceed the national average annual compensation paid to their employees with PhP 890.0 thousand. This was followed by Central Visayas and Northern Mindanao with PhP 619.3 thousand, and PhP 377.9 thousand, respectively.
Wireless telecommunications activities generated the highest revenue and incurred highest expenses
The total revenue generated by the establishments engaged in information and communication establishments amounted to PhP 680.4 billion. Meanwhile, this industry section also spent PhP 565.1 billion.
In terms of revenue, establishments engaged in wireless telecommunications activities were the top revenue generator with PhP 226.9 billion or 33.3 percent of the total revenue. Ranked in second were establishments engaged in computer programming, consultancy and related activities (24.6%) while wired telecommunication activities placed in third (15.5%). (Table 1A, and Figure 5)
With regards to expense, wireless telecommunications activities incurred the highest expenses for its operation with PhP 198.3 billion or (35.1%) of the total. Came in second and third rank are computer programming, consultancy and related activities with PhP 122.9 billion (21.8%), and wired telecommunications activities with PhP 86.6 billion (15.3%). (Table 1A, and Figure 5)
NCR-based establishments led revenue generation, and they were also the highest spender
At the regional level, NCR-based establishments generated the highest revenue with 88.8 percent share to total while the remaining regions shared the remaining 11.2 percent of the total revenue. (Table 3A)
Revenue per expense ratio stood at 1.20
The revenue per peso expense generated by the industry section stood at 1.20 in 2018. This means that for every peso spent, a corresponding 20 centavos was generated.
Meanwhile, except for satellite telecommunications activities which only posted 0.88 ratio, the rest of the industry groups in the section exceeded the 1.0 revenue per expense ratio. (Table 2)
Value-added was estimated at PhP 356 billion
The total value-added contributed by the information and communication establishments was estimated at PhP 356.4 billion.
Across industries, wireless telecommunications activities reported the largest value-added with a 31.7 percent share to total. Ranked in second is the computer programming, consultancy and related activities with 28.3 percent. (Table 1A, and Figure 6)
NCR dominated in terms of value-added generation
At the regional level, NCR had the largest contribution in the Philippine economy with PhP 313.4 billion or 87.9 percent of the total value added in the information and communication section. Central Visayas was far behind in second place with 5.9 percent, followed by Central Luzon with 1.5 percent. (Table 3A)
Sales from e-commerce generated PhP 1.6 billion in revenue
Computer programming, consultancy and related activities topped the sales from e-commerce with 90.7 percent (PhP 1.5 billion) while sound recording and music publishing activities ranked far second with only 3.6 percent (PhP 59.7 million). (Table 1)
At the regional level, NCR dominated with PhP 1.2 billion or 73.0 percent of the total e-commerce sales. (Table 2)
DENNIS S. MAPA, Ph.D.
National Statistician and Civil Registrar General