After an exceptional 2021, the WebSoft giants. Between January and September the major world operators of Software & Web they grow only in terms of revenues (+9,5%) and with geographical asymmetries: North America holds, Latin America stands out. While, since 2014, the e-commerce giant has been confirmed as the first in the world in terms of turnover and workforce: Amazon. But the most interesting data is the "unpaid" taxes by these web giants thanks to the results recorded in the countries with subsidized taxation: 12,4 billion in 2021 alone.
This is what emerges from the annual survey of the world's leading Software & Web groups carried out by the Mediobanca Research Area. The studio analyzes data for the first nine months of 2022 and the three-year period 2019-2021 of the 25 largest international WebSofts, with revenues exceeding 12 billion euros each, of which 11 are based in the United States, nine in China, two in Germany and Japan and one in South Korea. An in-depth analysis of the related Italian branches is also provided.
Downsizing of the WebSoft giants in the first 9 months of 2022
In the first 9 months of 2022, the world's leading WebSoft operators grew only in terms of aggregate turnover (+9,5% on the first nine months of 2021), with geographical asymmetries: the North America (+13,7%) holds more than Europe e Asia whose growth is limited (respectively +8,2% and +6,6%), strongly accelerating theLatin america (+24,9%), even if with still low values (1,5% of total turnover).
The return to normality is reflected in the rebound of the sectors most penalized by the pandemic: sharing mobility (+111,6% revenues Y/Y) e online travel sales (+55,5%). The increase in turnover appears to be more limited for those sectors which, on the contrary, had benefited most from the changes in consumer habits: food delivery (+ 27%), cloud (+21,3%) ed E-commerce (+3,8%). The sectors with the greatest impact on turnover are theE-commerce (37%), the dealer (25%) and the cloud (19%).
In the same period, the profitability Promptness (-5,5% the Mon on the first nine months of 2021) and the net profits (-42%), with each company producing an average daily net profit of 16 million compared to 27 million in 2021. The liquid assets (-11,9%) which in any case remains sustained, with an incidence on total assets of 23,4% at the end of September 2022 (from 28% at the end of December 2021, higher than the 14,4% of large manufacturing). This scaling reflects the majors investments for internal growth (+20% over the first nine months of 2021) and external growth, through M&A operations (goodwill +15%), but also the price support action of MY BAG (purchase of treasury shares +12%).
At the individual group level, US revenues surged in the first nine months of 2022 Uber (+ 99,3%), Booking (+63,5%) ed Expedia (+43,2%), followed at a distance by the Korean Coupang (+14,4%) and from the Japanese Rakuten (+13,7%). Negative and double-digit sign for Activision Blizzard (-21,8%), Qurate (-14,1%), Vip shop (-13,9%) And Wayfair (-12,8%). As regards industrial profitability, in the first nine months of 2022, Microsoft leads the ranking for Ebit margin (41,2%), ahead of Adobe (35,1%), Oracle (33,4%) and Nintendo (33%).
Was 2021 the last flare of the Websoft giants?
In 2021, the aggregate turnover of the 25 largest WebSofts in the world reached 1.584 billion euros, equal to 90% of Italian GDP. In a framework of forces, now consolidated for some time, in which the United States and China have shared almost all of the revenues: 67% of WebSoft's turnover was generated by the US giants, 28% by the Chinese ones and only 5% by groups from other countries. The pandemic has further highlighted the growth speed gap between WebSofts and multinational manufacturing companies. While the former accelerated their revenues for 50-2019 (+2021%), the latter only recorded +7,6%.
Amazon, Alphabet and Microsoft top WebSoft giants
Il turnover is increasingly concentrated: the first three are Amazon, A e Microsoft and represent half of aggregate revenues, with Amazon (414,8 billion, of which 50,9% generated by retail), which alone concentrates over a quarter. WebSoft multinationals continue to shine for industrial profitability. With an Ebit margin of 15,8% in 2021, they are in third place in the sector comparison after pharmaceuticals (24,1%) and telco (15,9%). However, if we focus exclusively on the digital core and exclude e-commerce, their Ebit margin soars to 25,8%, outperforming all other industrial sectors.
At the end of 2021, the WebSoft workforce numbered almost 4 thousand million people worldwide, an increase of over one million units on 2019, of which +810 thousand from Amazon alone, the undisputed queen for workforce: 1.608 thousand at the end of 2021.
WebSoft giants: 2021 billion in taxes saved in 12,4
In 2021, approximately 30% of the pre-tax profit of the world's 25 largest WebSofts was taxed in facilitated taxation, resulting tax savings of 12,4 billion in 2021 and 36,3 billion in the three-year period 2019-2021. The average rate is 15,4% in 2021, lower than the theoretical rate of 21,9%. Consequently, in the 2019-2021 period, taxation in countries with preferential taxation resulted in Tencent, Microsoft e A a tax saving of 13,4 billion, 6,9 billion and 5,2 billion respectively.
The study shows that an agreement between countries on the Global Minimum Tax would raise effective taxation to 16,3%, allowing for a greater redistribution of the tax base between countries.
Italian branches: 2021 million in taxes paid to the tax authorities in 150
The WebSofts preside over Italy through subsidiaries, especially concentrated in the North (Milan and province). The aggregate turnover of the Italian branches reached 8,3 billion in 2021, employing around 23 thousand workers. Compared to 2020, there are over 4 thousand more employees, mostly employed by the Amazon group which boasts the largest number of employees in Italy (11.911 units in 2021).
Furthermore, also in 2021, the subsidiaries of the WebSoft giants paid the Italian taxman almost 150 million for an effective tax rate of 25,1%. Also considering the provision for the payment of the Digital Service Tax, the tax rate would rise to 33,5%.
Websoft: Stock market crash in 2022
With the peak of capitalization reached in December 2021 (8.628 billion), 2022 records the first significant decline with a drop of -29,2% as at 18 November 2022. At the end of 2021, the capitalization of the 25 largest WebSofts was worth 8,3% of the total value of world stock markets, while it currently stands at 6,6%. In comparison with Italy, however, WebSofts are confirmed as heavyweights: they are worth ten times the whole price Italian stock exchange.
According to the Mediobanca study, as of November 18, 2022 the stock market podium is occupied by Microsoft (1.735 billion), A (1.219 billion) e Amazon (927 billion); wooden medal for the Chinese Tencent (340 billion). From the end of December 2021 to mid-November 2022, only five groups recorded a particularly strong performance: Pinduoduo (+ 32,1%), Vip shop (+ 22,3%), Activision Blizzard (+ 22,2%), IBM (+ 21,2%) and Adp (+ 14%).
