Booming Exports Help Propel TIN200 Companies to Billion Dollar Revenue Rise in 2018, Cementing Future for Tech as New Zealand’s Key Export Earner

Auckland, 24 October 2018 – The 2018 TIN Report, launched tonight at a gala awards event in Auckland, shows that turnover for New Zealand’s top 200 (‘the TIN200’) technology companies increased by 11% to reach $11.1 billion in the past year; the second billion-dollar growth result in three years and the driver behind a record profitability** rise for this group of companies.

Exports growth drove this expansion, growing 12.4% to reach a total of nearly $8 billion, helping companies achieve the economies of scale needed to grow profitability by a record 38.1%. The North American and Australian markets provided the bulk of export dollar growth ($571 million in combined growth); however, Europe was the fastest growing sector (16.7%) highlighting the ability of the TIN200 to compete and win globally.

“This year, the performance of New Zealand’s tech export sector is sending a strong message that it has the potential to become our country’s leading source of offshore income”, said Greg Shanahan, managing director of TIN. “An overwhelming number of key metrics point towards long-term sustainable growth for the TIN200 and we’re very excited to see the further potential that this growth presents.”

The TIN Report monitors the performance of New Zealand’s 200 (TIN100 and Next100) largest technology exporters in the areas of Information and Communications Technology (ICT), High-tech Manufacturing and Biotechnology. It is sponsored by New Zealand Trade and Enterprise, Spark, EY, Absolute IT, James & Wells and Simmonds Stewart.

ICT companies accounted for almost half this year’s TIN200 revenue growth, adding $521 million in com-bined revenue. The TIN200’s High-tech Manufacturing and Biotech firms also trended above their histori-cal averages, increasing revenue by 8.6% and 13.6%, respectively. For the first time in the 14-year history of the TIN Report, there are more ICT companies than High-Tech Manufacturing firms in the TIN200, reflecting the rapid proliferation of high-growth ICT companies in New Zealand over recent years. Furthermore, of the record 19 new entries joining the TIN200 ranks this year, more than half of these were ICT firms.

The Fintech secondary sector recorded the highest growth with a 33.2% increase in revenue for the year (a rise of $220 million). In addition, nine of the twelve TIN secondary sectors improved profitability.

Growth in 2018 was shared equally across the TIN200 companies with every revenue band growing by over 8%. Smaller TIN companies with turnover below $20 million experienced a growth resurgence this year with a 12.8% revenue rise, tripling their growth rate from last year’s Report.

This year’s TIN Report shows that growth was also spread across all New Zealand, with over half of the regions achieving revenue increases over 10%. The combined Greater Auckland and Northland regions accounted for 122 of the TIN200 companies and had a particularly strong year – contributing 54.9% (or $604m) of total TIN200 revenue growth.

The Hamilton and North Auckland/Northland regions each grew by over 16%, and Otago/Southland grew by 13%. The Wellington/Lower North Island region grew by more than 12% to reach more than $2.3 billion of this year’s total TIN200 turnover; the second-largest revenue generator after South Auckland (with $5.2 billion revenue).

Research and Development spend rose almost in line with revenue growth, rising 10.2% to just below $1 billion ($991 million). This suggests that the TIN200 place innovation at the heart of their core competen-cies and a key to their continued success.

“Technology has become a significant part of our economy,” said Mr. Shanahan. “But this is just the start of the New Zealand tech story, with the TIN200 setting their sights high as they push to become the number one export. The host of exciting companies at tonight’s launch event are testament to the strength, depth and shared ambition within the sector. This is a milestone for the sector, worthy of celebration.”

According to the TIN Report, the tech sector now employs 47,417 people globally with just over half in New Zealand (25,451). These jobs yield significantly higher wages than the national average, providing the opportunity for tech to help raise wellbeing and address economic disparities in New Zealand.

Foreign interest in New Zealand technology remains buoyant. TIN-tracked companies received more than $200 million in offshore investments in the past two years, including $41.2 million dollars invested in FY2018. There were also eight foreign buyouts of TIN200 firms in the past year, all focused on companies in sectors with high growth and unique IP.

Copies of the TIN Report are available in eBook or hard copy and can be ordered from www.tin100.com. Lists of the top ten and most promising companies in each category are listed below. A further regional breakdown is available on https://tin100.com/regional-data

Notes to Editors

*TIN Rising Stars: A TIN200 company qualifies as a TIN Rising Star if it has demonstrated sustained high growth over the past three years (Minimum 20%, 3-year CAGR). The Rising Stars come from a diverse range of New Zealand’s highest growth secondary sectors
**Profit is measured as EBITDA unless otherwise stated