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The communication services industries encompass telecommunication services, and postal and courier services. These industries comprise the Communication Services Division of the Australian and New Zealand Standard Industrial Classification (ANZSIC).
Table 24.1 shows key measures of industry structure and performance for the Communication Services Division as a whole, compiled from the ABS annual Economic Activity Survey. As can be seen from the table, by some measures the communication services sector overall has been one of the fastest growing in Australia. For example, sales grew from over $21b in 1995-96 to over $34b in 2000-01 (an increase of 59%). Other measures have fluctuated over the years, though most indicators for 2000-01 were positive:
- The number of communication services businesses continued to grow, reaching 4,389 businesses at 30 June 2001. The number of businesses increased by 5% in the year to 30 June 2001, following a 7% increase in the year to 30 June 2000.
- Employment reached a peak in 1995-96 (137,000 persons) and fluctuated over the next few years. In the year to 30 June 2001, employment increased by 0.4% to 120,000 persons.
- Gross operating surplus increased by 5% between 1999-2000 and 2000-01, turning around the decrease of 1% between 1998-99 and 1999-2000.
- Operating profit before tax increased by 5% between 1999-2000 and 2000-01, following a fall of less than 1% between 1998-99 and 1999-2000.
- Net worth grew by 10% in 2000-01, replicating a 10% rise in 1999-2000.
- Capital spending has fluctuated over the years, but increased by 80% between 1999-2000 and 2000-01, following an increase of 30% between 1998-99 and 1999-2000.
- Industry value added for the communication service industries increased by 6% between 1999-2000 and 2000-01, after a fall of 0.5% between 1998-99 and 1999-2000.
24.1 COMMUNICATION SERVICES INDUSTRIES, Structure and performance
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| | Units | 1995-96 | 1996-97 | 1997-98 | 1998-99 | 1999-2000 | 2000-01 |
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Industry structure | | | | | | | |
| Businesses at 30 June | no. | 2,363 | 3,049 | 3,540 | 3,899 | 4,172 | 4,389 |
| Employment at 30 June | ’000 | 137 | 125 | 118 | 119 | 119 | 120 |
Income statement | | | | | | | |
| Sales of goods and services | $m | 21,631 | 23,691 | 24,696 | 29,432 | 32,696 | 34,407 |
| less Cost of sales | $m | 9 271 | 11,135 | 9,827 | 13,548 | 17,077 | 17,469 |
| equals Trading profit | $m | 12,360 | 12,556 | 14,869 | 15,884 | 15,619 | 16,938 |
| plus Interest | $m | 179 | 171 | 140 | 155 | 137 | 180 |
| plus Other operating income | $m | 624 | 77 | 19 | 252 | 886 | 894 |
| less Labour costs | $m | 6,273 | 6,605 | 6,122 | 5,548 | 5,578 | 6,071 |
| less Depreciation | $m | 2,791 | 3,026 | 2,961 | 3,354 | 3,787 | 3,640 |
| less Other operating expenses | $m | 142 | 442 | 426 | 399 | 373 | 1,037 |
| equals Earnings before interest & tax | $m | 3,957 | 2,731 | 5,520 | 6,989 | 6,904 | 7,264 |
| less Interest expenses | $m | 723 | 742 | 916 | 836 | 798 | 858 |
| equals Operating profit before tax | $m | 3,234 | 1,989 | 4,603 | 6,153 | 6,105 | 6,406 |
Total assets | $m | 34,373 | 37,964 | 36,358 | 40,608 | 45,798 | 55,898 |
Total liabilities | $m | 17,729 | 23,713 | 21,196 | 22,530 | 25,882 | 34,039 |
Net worth | $m | 16,643 | 14,251 | 15,162 | 18,079 | 19,916 | 21,858 |
Capital expenditure | $m | 6,217 | 5,365 | 5,304 | 6,173 | 8,004 | 14,373 |
Gross operating surplus | $m | 6,615 | 8,351 | 9,585 | 11,558 | 11,447 | 11,994 |
Industry gross product(a) | $m | 12,888 | 14,956 | 15,648 | . . | . . | . . |
Industry value added(a) | $m | . . | . . | 16,205 | 17,107 | 17,025 | 18,065 |
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(a) From 1997-98, under the new international standard, the 1993 edition of the 'System of National Accounts' (SNA93), the contribution to gross domestic product (GDP) by industries is measured by ‘industry value added’ (IVA). Estimates for IVA measure the value added by an industry to the intermediate inputs used by that industry. Previously the corresponding contribution to GDP was measured by ‘industry gross product’. Further information on the changes to international standards can be found in the 'Information Paper: Implementation of Revised International Standards in the Australian National Accounts' (5251.0). |
Source: Business Operations and Industry Performance, Australia, 2000-01 (8140.0). |
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