Companies

Champion of development is the field of Information Technology – Communication

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Champion of development is the field of Information Technology - Communication

The ICT sector in Cyprus has been the fastest-growing sector in the last decade, with an average growth rate of 15%. It is now in third place in terms of gross value added, contributing 9.6% to the country's GDP in 2022. The sector's total contribution to the economy in 2022 was €2.33 billion, showing a 277% increase in a decade. The success of Cyprus in attracting multinational technology companies is attributed to the government's attractive incentives package and the efficient business facilitation unit. The sector's momentum is expected to continue due to investments in digitalization and the European Union's focus on digital transformation. However, a challenge for the sector is the lack of local talent with the necessary skills, which requires efforts in upskilling and promoting digital education. The top five sectors contributing to Cyprus' GDP are Wholesale and Retail Trade, Financial and Insurance Activities, ICT, Real Estate Management, and Professional, Scientific, and Technical Activities.

SAP to restructure 8,000 jobs in push towards AI, shares hit record

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SAP to restructure 8,000 jobs in push towards AI, shares hit record

Shares of SAP SE increased by 7% to a record high after the company predicted growth in cloud revenue and announced a restructuring plan for 8,000 jobs to focus on AI-driven business areas. SAP plans to spend 2 billion euros on a program to retrain employees or offer voluntary redundancy for those who cannot be retrained. The restructuring is expected to contribute 500 million euros to operating profit in 2025 due to efficiency improvements. SAP forecasted double-digit percentage growth in cloud business revenue and overall operating profit for the current year, with cloud revenue expected to rise 24%-27% in 2024. The company reported a 23% growth in cloud revenue to 13.66 billion euros in 2023 and a currency-adjusted 13% increase in operating profit to 8.7 billion euros last year. For 2024, SAP expects operating profit to grow between 17% and 21%. SAP also adjusted its 2025 operating profit target to 10 billion euros due to a change in accounting practices.

India, ’s Zee slides 30 per cent, Sony deal collapse stokes worries about its prospects

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India, ’s Zee slides 30 per cent, Sony deal collapse stokes worries about its prospects

– Zee Entertainment’s shares dropped by 30% after the collapse of its billion merger with Sony’s local unit.
– The failed merger has raised concerns about Zee’s ability to compete in the market.
– Six brokerages have recommended selling Zee’s stock following the announcement.
– A merger between Zee and Sony could have posed a greater challenge to competitors like Disney, Reliance, Netflix, and Amazon.
– The breakdown of talks between Zee and Sony occurred amid increasing competition in the Indian media market.
– Zee has experienced declines in profit, advertising revenue, and cash reserves.
– Analyst Vivekanand Subbaraman suggested that Zee could lose its No.2 position in the Indian broadcast market due to difficulties in scaling up.
– Zee’s net profit fell by 68% in the first half of the current financial year, with advertising revenue down 3.5% and expenses up nearly 20%.
– Zee’s cash reserves decreased by 40%.
– Zee’s stock value decreased by more than 0 million since the merger announcement in September 2021.
– CLSA downgraded Zee’s rating and reduced its target price by 34%.
– The average analyst rating for Zee has shifted to “hold” from “buy,” with a median price target decrease of 16%.
– Analysts have varying forecasts for Zee’s stock price, with one predicting a further decline.
– Emkay Global does not expect Zee to remain independent and anticipates other potential suitors, but also warns of possible shareholder activism.
– Sony cited unmet “closing conditions” as the reason for the merger’s failure, with disagreements over leadership being a factor.
– Zee had proposed its CEO Punit Goenka to lead the merged entity, but Sony objected following an investigation into Goenka by India’s market regulator.

UK still undecided on digital cash as privacy concerns persist

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UK still undecided on digital cash as privacy concerns persist

British authorities will decide no earlier than next year on the potential implementation of a state-backed digital pound. The Bank of England and Britain’s finance ministry are continuing with the design phase after a public consultation that received 50,000 responses, with privacy concerns being a prominent issue. No final decision has been made to pursue a central bank digital currency (CBDC), and a decision on whether to proceed to the build phase is expected around the middle of the decade.

Prime Minister Rishi Sunak supported the idea when he was finance minister in 2021, but the digital pound would likely not be operational until near the end of the decade if approved. Proposals suggest that individuals could hold electronic pounds up to a limit of 10,000 to 20,000 pounds, without earning interest. Banks have advocated for a lower limit due to concerns over potential outflows from traditional bank accounts.

British lawmakers have not yet been convinced of the necessity for digital cash, and privacy issues are also a concern for other central banks, including the European Central Bank and the US Federal Reserve. The European Union’s progress on a digital euro has been hampered by similar concerns.

The UK government states that a digital pound would be private but not anonymous, allowing for the tracking of transactions suspected of involving money laundering or financing terrorism. However, it would not replace physical cash, ensuring continued access to an anonymous payment option. The government also plans to ensure privacy through legislation and further public consultations if the project advances. The digital currency would not be programmable to block specific transactions, addressing some privacy advocates’ concerns.

Pokemon Co says will defend intellectual property after viral game sparks debate

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Pokemon Co says will defend intellectual property after viral game sparks debate

The Pokemon Company has announced its intention to investigate and potentially take action against any infringement of its intellectual property rights. This statement comes in response to a game developed by PocketPair, called “Palworld,” which has been referred to as “Pokemon with guns.” “Palworld” is a survival adventure game where players can use guns to capture and train creatures known as “pals.” Since its release on January 18, “Palworld” has sold over 8 million copies and is available in early access on Steam and on the Xbox platform. The game has been both praised for its gameplay and debated for its similarities to the Pokemon series. PocketPair’s CEO Takuro Mizobe has reported receiving libelous comments and threatening tweets. The Pokemon Company received many inquiries about the game after its January 2024 release. The Pokemon Company was established with investments from Nintendo, Game Freak, and Creatures. Nintendo has declined to comment on the situation.

Apple faces ‘strong action’ if App Store changes fall short, EU’s Breton says

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Apple faces ‘strong action’ if App Store changes fall short, EU’s Breton says

Apple faces strong action if its changes to the App Store do not meet incoming European Union regulations, according to the bloc’s industry chief. The company will soon allow software developers to distribute their apps to Apple devices via alternative stores in compliance with the EU’s Digital Markets Act. However, critics argue that the changes do not go far enough and may violate the DMA. EU industry chief Thierry Breton stated that if the proposed solutions are not satisfactory, strong action will be taken. Under Apple’s new regime, developers will still have to submit apps for review, but users will have more choice in web browsers and contactless payment apps. Developers who opt out of using Apple’s App Store or payment system will still have to pay a “core technology fee” of 50 euro cents per user account per year.

Bank deposits see increase

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Bank deposits see increase

In December, total deposits in the banking system increased by €346 million, reaching €52.2 billion. Total loans also increased by €284.2 million, reaching €24.8 billion. The system liquidity, which is the difference between deposits and loans, was set at €27.4 billion. Deposits from residents of Cyprus increased by €388 million, with household deposits increasing by €461 million. Deposits from domestic non-financial corporations decreased by €252 million. Deposits from other domestic sectors increased by €179 million. Loans to residents of Cyprus increased by €132.9 million, with loans to households increasing by €99 million and loans to non-financial corporations increasing by €54.5 million. Loans to other domestic sectors decreased by €20.6 million.

Apple faces ‘strong action’ if App Store changes fall short, EU’s Breton says

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Apple faces ‘strong action’ if App Store changes fall short, EU’s Breton says

Apple is facing potential strong action from the European Union if its changes to the App Store do not meet the incoming regulations set by the Digital Markets Act (DMA). The company will soon allow software developers to distribute their apps through alternative stores and opt out of using Apple’s in-app payment system. However, critics argue that the changes are not sufficient and may violate the DMA. EU industry chief Thierry Breton stated that if the proposed solutions are not satisfactory, strong action will be taken. Under the new regime, developers will still have to submit apps to Apple for review, and users will be able to choose their default web browsers and contactless payment apps. However, developers will still be required to pay a “core technology fee” of 50 euro cents per user account per year.

Chartered pension fund donates , €9.5 mln to BOCOC

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Chartered pension fund donates , €9.5 mln to BOCOC

The former Chartered Bank staff pension fund donated €9.5 million to the Bank of Cyprus Oncology Centre (BOCOC) to replace three linear accelerators. The Bank of Cyprus CEO announced that the bank has contributed a total of €70 million to the oncology center over the past 25 years. The center has treated over 55,000 patients since its establishment in 1998, accounting for 60% of diagnosed cancer cases on the island during the past 25 years.

Wizz Air carries 2.2 mln passengers from Cyprus

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Wizz Air carries 2.2 mln passengers from Cyprus

Wizz Air carried 2.2 million passengers to and from Cyprus last year, with 11,063 flights or an average of 7.5 daily from its Larnaca hub. This was nearly double the schedule for 2022. Wizz Air increased its Cyprus traffic by 71% from 2022 and contributed to the 11.6 million passengers that used Larnaca and Paphos airports in 2023. The airline offers 31 routes to 18 countries from its Larnaca base and achieved a 99.63% completed flights rate. Wizz Air finished 2023 with over 60 million passengers, a record for the airline and a 32% increase compared to 2022. They launched nearly 100 new routes, took delivery of 32 new aircraft, and achieved their lowest ever average annual carbon intensity result. Wizz Air will be celebrating its 20th anniversary in 2024.