Serbia’s ICT sector recorded a significantly faster increase in revenue than operating expenditure during the second quarter, with the gap between the two measures widening to 4.2 percentage points. ICT revenue grew 9.9% from the first quarter, while operating expenses increased 5.7%, according to preliminary official data. The quarterly difference was considerably larger than the corresponding gap across Serbia’s overall non-financial business economy, indicating stronger operating leverage within the technology sector during the period.
Technology Companies Increase Revenue Faster Than Costs
The performance reflects the cost structure of technology businesses, which can increase revenue from software, cloud and professional services without necessarily expanding expenses at the same rate. Greater utilisation of existing employees and infrastructure, stronger export contracts and automation can contribute to higher revenue without equivalent increases in operating costs. The figures may also reflect more restrained hiring. Labour represents a major cost for ICT companies, while slower recruitment and tighter management of subcontracting expenditure could have contributed to the wider quarterly difference.
Annual Growth Shows a Narrower Gap
The annual comparison presents a considerably smaller difference. ICT revenue increased 8.3% year on year, while expenditure rose 8%, leaving only a 0.3-percentage-point gap. That narrower spread indicates that the sector continues to operate with a substantial underlying cost base and that the stronger quarterly relationship between revenue and expenditure has not yet established a longer-term pattern.
The aggregated data also cover businesses with different operating models, including telecommunications operators, software developers and other information-service companies. Individual companies can therefore record significantly different revenue and cost performance. If the quarterly revenue-cost difference persists, it could strengthen the capacity of Serbian ICT companies to finance exports, product development and regional expansion, while also potentially increasing their investment appeal.
