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Apple, overseas firms lead in value creation


Tech, media, and telecom companies in emerging markets and

those considered "digital innovators" are among the world's

tops in providing value to their investors, according to a new

study from the Boston Consulting Group.

Out today, the report "Swimming Against the Tide: How

Technology, Media, and Telecommunications Companies Can

Prosper in the New Economic Reality" found that seven of the

top 10 telecom performers, five of the top 10 media performers,

 and four of the top 10 technology performers are in India, Taiwan, Mexico, China, and other emerging markets. But

global companies tuned into the digital revolution, such as

Apple and Google, are also tops in rewarding their investors.

Covering the period from 2005 through 2009, the report

examined the total shareholder return (TSR) of 126 different

companies throughout the world. Of these, 81 percent were

found in emerging economies, adding up to 64 percent of the

overall total, according to Boston Consulting.
The top media performers included Tencent Holdings, Naspers, and Net Servicos de Comunicacao. Tops in telecom were

America Movil, China Mobile, and Bharti Airtel. And the best

performers in the technology sector were Apple, MediaTek, and

Infosys Technologies.


 






"Emerging-market companies are spreading their wings to play

larger roles on a global stage," David Dean, a senior partner at

Boston Consulting and co-author of the study, said in a

statement. "Many of these countries have moved beyond being

primarily a source of cheap labor to become important centers

of technical innovation."

Overall, the tech, media, and telecom sectors posted mediocre

performance, according to the consultancy. Where the sample

of 712 companies in all industries yielded a 6.6 percent average

annual TSR, the technology sector came closest (6.2 percent), followed by telecom (5.3 percent), and media companies (2.5
percent).

The Boston Consulting Group based total shareholder return

on six different factors: revenue growth, changes in profit

margins, the valuation multiple (the value of the business), cash

dividends, share repurchases, and debt repayments. Among

these, revenue growth typically added up to 70 percent or 80

percent of the overall shareholder value among most companies,

according to the report.


 
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