Economic atlas of HT Group

Commissioned by: HT d.d. 
Project duration: May 9, 2016 – October 30, 2016  
Project manager: Maruška Vizek, PhD
Collaborators: Tajana Barbić, PhD, Davor Mikulić, PhD, Ivana Rašić Bakarić, PhD, Marina Tkalec, PhD

Brief outline:
In cartography, atlas is defined as a collection of astronomical and geographic maps systematically arranged into the content entity. It allows us to determine the position of any point in the observed space on Earth or in the universe. Pandan to geographic or astronomical atlas would be an economic atlas whose purpose is to enable individual companies, together with all their business processes and interest groups, such as employees, suppliers, shareholders and state, to be positioned and described within the economic space of the country in which it operates. Unlike a geographic atlas that displays tangible and eye-catching space, the economic space is abstract and can be determined only by complex economic and business statistics, which present the building material for the atlas. The economic atlas is also significantly more complex than the geographic atlas, since in order to define the role and importance of a company in the economic space of the country, we need more dimensions than typically used in geographic atlases. The economic atlas, therefore, is characterized by a multidimensionality which, regardless of its complexity, must be described and incorporated into a relatively broad and holistic, but at the same time rounded and precisely structured whole. 

The objective of the HT Group's economic atlas was to assess, in a systematic, credible and consistent manner, the impact and economic importance of HT Group for the total economy of the Republic of Croatia. In order to achieve this goal, the Atlas presented the results of a series of analytical methods and procedures through which we assessed the importance of HT Group for the Croatian economy in multiple dimensions. The analyses focused on 2015, so that the findings and conclusions of the Atlas corresponded to the Group's current state of affairs to a greater degree. When necessary, the data from previous years were taken into account. Particular attention was paid to the overall performance of the HT Group on the economy, with total impact implying the sum of direct, indirect and induced effects, which were assessed using the input-output model. Due to the fact that HT Group invests significant financial resources in the development of telecommunication infrastructure and it is the first among the service private companies in Croatia considering the size of its total investments, the Atlas also shows an assessment of the importance of the HT Group for the corporate sector of the Republic of Croatia and the City of Zagreb, in particular analyzing the importance of the Group for the High Technology Sectors, which are the carriers of both the technological and overall economic development of each country. In addition to the above-mentioned dimensions of economic life, the Atlas also contains an analysis of the importance of HT Group for the Croatian capital market and an overview of the financial resources, activities and programs through which HT Group has consistently demonstrated that corporate social responsibility is an integral part of its business. 

For the purpose of achieving the objective of the research, the following sections of the HT Group's Economic Atlas were defined, within which the role and importance of HT Group for Croatian Economy were analyzed and defined: 
  1. HT Group and macroeconomic trends – gross domestic product, gross value added, investments, exports, employment
  2. HT Group and business economy (incorporated sector) – business sector revenues, business sector profits, employment of the business sector, gross value added of the business sector
  3. HT Group and other business sectors (B2B) – influence of HT Group on the business activity of suppliers, use of HT group products in customer business activities, intermediate consumption of HT Group products and services by business sectors
  4. HT Group and City of Zagreb – gross value added, employment, wage bill
  5. HT Group and household consumption – the share of HT Group's products and services in the structure of consumption of the average household in the Republic of Croatia
  6. HT Group and capital market – importance of HT Group for liquidity and capitalization of Croatian market capitalization, influence of change in share price of HT d.d. on the capital market trends, the importance of HT Group dividends
  7. HT Group and budget of the consolidated general government of the Republic of Croatia – contribution of HT Group to the state budget, contributions of HT Group to the budgets of local self-governments
  8. HT Group and the EU Funds
  9. HT Group and beneficial social activities – donations and humanitarian activities, sponsorships, payment for authors' rights to Croatian creatives, educational activities

Key findings: 
  • HT contributed the most newly created value in Croatia, and the entire HT Group realized more than 3% of Croatia's total GDP. 
  • HT Group created more than 27,000 jobs in Croatia. 
  • HT was also the largest private investor in Croatia. 
  • HT Group paid 54% higher wage than the state average and 16% above average of information and communication sector. 
  • Overall, HT Group directly and indirectly contributed almost 4% of all budget revenues in 2015.